SHELBY COUNTY, Ala. — The Colonial Gas Line explosion in Shelby County on Monday already has people feeling a little more pain at the pump. According to a report from Bloomberg, New York premium to crude oil prices jumped up 60 percent, and December-delivery gasoline prices rose as much as 15 percent.
Experts say that prices are likely to rise in the affected areas and that the jump is the result of expected oil shortages. According to the website Gas Buddy, the average price for a gallon of gasoline in Alabama is $2.04, which is 16 cents below the national average. But Gas Buddy analyst Patrick DeHaan told Al.com that the market is “clearly in a panic” and prices will soon go up.
Governor Bentley (R-Ala.) addressed the issue this morning, and stated that his administration will take steps to minimize the effects of the damage.
“What I will do is I will loosen some of the restrictions on hauling gasoline in if we have to have more gasoline in Alabama,” Bentley said. “There will not be a total shortage but there will be, unfortunately, some increase in cost. But it will re-adjust quickly.”
The damaged pipeline carries refined oil from Houston, Tex. to the New York Harbor. It exploded when contractors were attempting to flush one of the pipes, severely burning seven workers. The explosion started a blaze that torched 31 acres before responders could contain the fire.
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