Keystone XL could hike gas prices as much as 40 cents a gallon

If the Keystone XL pipeline is built, Americans could pay as much as 40 cents more per gallon for gasoline in some parts of the country, according to a new report by the nonprofit Consumer Watchdog [PDF].

That’s because oil extracted in Canada would start to bypass traditional American markets, traveling through the pipeline to the Gulf Coast and onto tanker ships bound for international markets where oil fetches higher prices.

“The pipeline is being built through America, but not for Americans,” Consumer Watchdog researcher Judy Dugan said in a statement. “Keystone XL is not an economic benefit to Americans who will see higher gas prices and bear all the risks of the pipeline.” From the report:

The aim of tar sands producers with refining interests on the Gulf Coast — primarily multinational oil companies — is to get the oil to their Gulf refineries, which would process additional oil largely for fuel exports to hungry foreign markets. Other oil sands investors, including two major Chinese petrochemical companies and major European oil companies, have an interest in exporting crude oil and/or refined products to their markets. Such exports would drain off what the tar sands producers consider a current oversupply, and help push global oil prices higher. …

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