‘Colonial Pipeline blocking fuel shipment after Harvey’

Bloomberg

The biggest independent refiner in US says operator of the nation’s largest gasoline pipeline is blocking its efforts to supply more fuel to East Coast in the aftermath of Harvey. Two of Valero Energy Corp.’s Gulf Coast refineries kept operating throu-ghout the storm, churning out gasoline. After US government waived fuel specifications, allowing refiners to ship winter-grade gasoline two weeks early to ease supply shortages while flooded refineries recover, Valero was ready to ship more fuel. The problem, according to a letter from Valero to Texas Governor Greg Abbott obtained by Bloomberg: Colonial Pipeline Co. won’t accept extra barrels.
“Valero is nearing containment and is having to hold the refineries at reduced rates or potentially even shutdown,” according to the letter. “Valero cannot get Colonial to take product.” Panic at the pump is spreading across the country just as the long Labor Day weekend sets in, boosting the nationwide average price for regular gasoline at the pump by 7 cents a gallon to $2.519, the steepest single-day increase in a decade, AAA data show.