AAA Alabama: No Major Gas Price Hikes after Pipeline Explosion

Alabama News Network has spoken with AAA Alabama about the possibility of gas price hikes in the wake of Monday’s explosion of a Colonial Gas pipeline in Shelby County, south of Birmingham. That blast killed one worker and left about six others hurt.

AAA Alabama spokesman Clay Ingram says the impact on gas prices in Alabama should be less than when the same pipeline was leaking in September.  At that time, Ingram says prices rose about 14 cents a gallon on average across Alabama, although the increase was much less in the Montgomery area and in southern parts of the state.

Ingram says during the September leak, a line was down for 11 days. He says that this time, gas could be flowing normally as early as Saturday, which would be half the time. Even so, he says prices could rise a little bit in Alabama over the next week or two.

Colonial Pipeline says it restarted one of its two main pipelines, line 2, which transports diesel, jet fuel and other products, around 11 a.m. CDT today. The other line could be running as soon as Saturday.

Ingram says a major price spike in Alabama or gas shortages would likely only happen if there is a lot of “panic buying” of gas.

Monday’s explosion happened about a mile from where the leak occurred.  The Colonial Pipeline runs from the Houston, Texas, area to New York and is one of two or three primary gas pipelines in the U.S.

A federal agency that regulates pipelines says contractors were working on repairs stemming from the September leak when gasoline ignited and caused the explosion. Colonial Pipeline executive Gerald Beck said a nine-man crew was using a track hoe to excavate the pipeline as part of preparation work so permanent repairs of the September leak could be made. Beck said the track hoe — a large piece of heavy equipment — struck the pipeline, causing the explosion.

Gov. Robert Bentley has declared a state of emergency to ease restrictions on gasoline truck drivers following a pipeline explosion, saying the accident might disrupt fuel distribution in the state. Bentley’s action means that for the time being, truckers carrying gasoline won’t be subject to the limits on hours they may drive that apply under normal circumstances.

(Copyright 2016 The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)