Colonial Pipeline Shuts Down Due To Harvey

NEW JERSEY (CBS) -- A big blow to the U.S. fuel supply - A major pipeline that carries tens of millions of gallons of fuel between Houston and North Jersey has shut down because of Harvey.

The Colonial Pipeline is like the I-95 of the nation's pipeline network, it's that vital. But the fuel won't be flowing in the 5,500 miles of pipes that stretch from Houston to North Jersey because Harvey has shut down 23 percent of the nation's refinery capacity.

Harvey Aftermath: Explosions Reported At Flooded Chemical Plant 

GasBuddy analyst Patrick DeHaan says there's a squeeze on refineries that are up and running.

"Some of those refineries in Philadelphia are looking to send barges of gasoline down towards the Southeast and Mid-Atlantic," said DeHaan.

And gas prices have spiked. AAA says in Philadelphia, the average price of a regular gallon is $2.65, an 11 cent jump in a week. The national average of $2.45 a gallon is the highest in two years. Still, DeHaan says there's no need to panic.

"It's gonna be a matter of weeks but gas prices will eventually come back down," said DeHaan.