How North Carolina's Fuel Standards Evolved

North Carolina has seen its fair share of fuel-related issues, from refinery troubles causing price hikes to fuel shortages impacting a large number of gas stations. In May 2021, a cyberattack on the Colonial Pipeline led to a shutdown, causing panic buying and fuel shortages across the state. This resulted in a frenzy of panic buying, with long lines at gas stations and schools shifting to remote learning. In February 2024, refinery issues again impacted fuel prices, with AAA data showing an increase in the average price of gasoline. North Carolina is also exploring alternative fuels and advanced vehicle technologies, with initiatives like the Zero Emission Vehicle (ZEV) Infrastructure Study and the adoption of biodiesel, showcasing the state's commitment to clean energy and transportation.

Gas prices in North Carolina

The gas prices in North Carolina can vary across different cities. During the same period, Durham-Chapel Hill recorded the highest average gas price in the state at $3.25, followed by Raleigh at $3.24, and Norfolk-Virginia Beach-Newport News at $3.23. Other cities with relatively higher gas prices include Rocky Mount ($3.22), Greenville ($3.21), and Goldsboro ($3.18).

The swings in gas prices can be attributed to several factors. Refinery troubles, such as the shutdown of a BP refinery in Whiting, Indiana, due to a power outage, can contribute to tighter gasoline supplies and, consequently, higher prices. According to AAA spokesman Andrew Gross, once the refinery operations are back to normal, price increases should slow down, and seasonal gains will be lower.

Additionally, North Carolina has experienced fuel shortages in the past, which can also impact gas prices. In May 2021, GasBuddy's top analyst, Patrick De Haan, reported that 69% of all North Carolina gas stations were without fuel, causing a frenzy of panic buying among consumers. De Haan predicted that it could take up to two weeks for the situation to improve, and recovery from the fuel shortage was expected to take a few weeks.

Gas shortages in North Carolina

In May 2021, a cyberattack on the Colonial Pipeline led to gas shortages in North Carolina and several other states in the US Southeast. The Colonial Pipeline, which runs from Texas to New Jersey, delivers about 45% of the gasoline consumed on the East Coast. The shutdown of the pipeline exposed a critical vulnerability in how both crude oil and refined petroleum products are transported across the country and to gas stations.

The cyberattack occurred on May 7, 2021, and was caused by hackers who lock up computer systems and demand a ransom to release them. The hackers did not take control of the pipeline's operations, but Colonial Pipeline shut it down to contain the damage. The company restarted operations on May 12, but it was expected to take several days for things to return to normal.

As a result of the shutdown, many gas stations in North Carolina were left without fuel. On May 13, 2021, 69% of gas stations in the state were without fuel, and by May 18, 43% were still out of fuel. The shortages caused panic-buying among residents, which further exacerbated the situation. State officials discouraged panic-buying and urged residents to refrain from unnecessary trips to the pump.

The gas shortages led to disruptions in several sectors. At least five school systems in North Carolina shifted to remote learning due to the fuel crisis. Businesses, such as racetracks and entertainment venues, were also impacted, as they rely on customers who drive from surrounding states. The shortage also affected hikers on the Appalachian Trail, who depend on cars and vans for transportation and supplies.

The situation gradually improved over time, with fuel forecasting experts noting a slight decrease in gas shortages as the week progressed. By May 18, the number of gas stations without fuel in North Carolina continued to decrease, and restoration efforts were mainly focused in the state. Energy Secretary Jennifer Granholm assured the public that the nation was "over the hump" on gas shortages, with about 200 stations returning to service every hour.

Gas stations without fuel

As of May 14, 2021, North Carolina was facing a fuel shortage, with 69% of gas stations without fuel. This was a slight improvement from 74% on the previous day, Wednesday, and an increase from Thursday evening's figure of 77% in the Raleigh-Durham metro area.

The situation was caused by a ransomware cyberattack on the Colonial Pipeline on May 7, 2021, which forced a shutdown. The pipeline delivers about 45% of the gasoline consumed on the East Coast, from Texas to New Jersey. The shutdown caused gas shortages that spread from the South to the Mid-Atlantic states, with Virginia and Washington, D.C., being hit particularly hard.

The pipeline operator announced on Saturday, May 15, that it had resumed "normal operations," but despite these efforts, over half of North Carolina's gas stations were still without fuel on Sunday afternoon. GasBuddy.com reported that 57% of gas stations were showing outages at 9 p.m.

The head of petroleum analysis for GasBuddy, Patrick De Haan, predicted that it would take a few weeks for the situation to fully recover, and that fuel outages should be less than 20% by Memorial Day weekend. De Haan also stated that stations were likely focusing on replenishing regular gasoline first before moving on to premium.

The limited fuel supply caused long lines at gas stations, and some stations did not have all their normal options available. This was due in part to a safety precaution, as letting people pump gas immediately after a delivery can clog the pumps, according to Gary Harris, the executive director for North Carolina Petroleum & Convenience Marketers. It takes about an hour to reset the connection of more fuel to the pumps, and shutting them down during deliveries prevents damage.

The fuel shortage impacted businesses and schools. For example, Marcus Boyd, the owner of Fayetteville Appliance Repair, had technicians who were struggling to access fuel, causing delays in their work. Additionally, at least five North Carolina school systems shifted to remote learning due to the gasoline supply crisis.

Refinery issues

The impact of refinery issues can be far-reaching and lead to higher prices and fuel shortages across multiple states. In the case of the BP refinery shutdown, drivers in Midwestern states were the most affected. Similarly, the Colonial Pipeline shutdown resulted in gas shortages across multiple states in the South and Mid-Atlantic regions, causing panic buying and a frenzy at the pumps.

Fuel companies, such as Mansfield Energy, play a crucial role in monitoring and managing fuel availability and prices. In January 2025, Mansfield Energy issued a diesel fuel shortage alert for the Southeastern United States, including North Carolina. The alert highlighted the rapidly evolving conditions, with economics changing significantly daily. The company noted that carriers were facing challenges in finding supply, which delayed deliveries and strained local trucking capacity.

To address the diesel fuel shortage, Mansfield Energy issued a Code Red for the Southeast, requesting a 72-hour notice for deliveries to secure the fuel. The company's alert underscored the critical nature of the situation and the need for proactive measures to mitigate the impact on fuel availability and prices in the affected regions, including North Carolina.

While refinery issues can cause disruptions in the fuel market, they also highlight the importance of proactive monitoring, efficient logistics, and effective communication to manage fuel supply and demand dynamics.

Alternative fuels

North Carolina is committed to clean energy and has a range of laws and incentives in place to encourage the use of alternative fuels and advanced vehicles.

The state has set a goal that 75% of new or replacement state government light-duty cars and trucks with a gross vehicle weight rating of 8,500 pounds or less must be alternative fuel vehicles (AFVs) or low-emission vehicles. To achieve this, the North Carolina State Energy Office administers the Energy Policy Act (EPAct) Credit Banking and Selling Program. This program enables the state to generate funds from the sale of EPAct 1992 credits, which are then deposited into the Alternative Fuel Revolving Fund. This fund is used to offset the costs of purchasing biodiesel blends of at least 20% (B20) or ethanol blends of at least 85% (E85), developing alternative fuelling infrastructure, and purchasing AFVs and hybrid electric vehicles.

Additionally, the retail sale, use, storage, and consumption of alternative fuels, such as biodiesel, ethanol, compressed natural gas, propane, and electricity, are exempt from the state retail sales and use tax in North Carolina. The state also has a Clean Fuel Advanced Technology (CFAT) project that provides grant funding to reduce transportation-related emissions for areas that do not meet the National Ambient Air Quality Standards.

North Carolina also has specific laws and incentives related to natural gas and propane. For natural gas vehicles (NGVs), there is a weight exemption that allows them to exceed the state's gross vehicle weight limits by the difference in weight between a natural gas tank and fueling system and a diesel tank and fueling system, up to a maximum of 82,000 pounds. For propane dealers, there are specific licensing, insurance, and protection requirements that must be met.

The state also has transportation data and information available for alternative fuels and advanced vehicles, including laws and incentives, fuelling stations, and fuel prices, to support the transition to cleaner energy sources.

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