Keystone XL pipeline ‘will raise fuel prices’

Donald Trump’s go-ahead for the construction of the Keystone XL pipeline will increase fuel prices in the Midwest. That’s the view of non-profit group Consumer Watchdog, which claims the project […]

Register now!

By Priyanka Shrestha

Donald Trump’s go-ahead for the construction of the Keystone XL pipeline will increase fuel prices in the Midwest.

That’s the view of non-profit group Consumer Watchdog, which claims the project is also likely to bring fewer jobs, referring to its 2013 analysis.

The comment comes as the US President signed an executive order for the pipeline this week, suggesting it would create 28,000 jobs.

The report states while the pipeline developers have insisted the project would create tens of thousands of jobs, “they have offered no proof of substantial jobs created beyond construction and maintenance of the pipeline itself”.

It claims pipeline is a way to move Canadian crude oil to Asia via the Gulf coast, re-routing cheap crude oil that now feeds Midwest refineries.

Consumer Watchdog believes much of the Canadian oil would go directly to Gulf Coast refineries owned by the same multinational companies investing in tar sands.

It adds the likely result would be increased fuel prices in the MidWest, hiking them as much as 20-40 cents per gallon.

Jamie Court, Consumer Watchdog President believes Keystone XL “was never about jobs for America or crude oil for America, it was about profits for ExxonMobil and others who owned stakes in the tar sands”.

The report adds: “US consumers should be wary of the Keystone XL pipeline – not just for substantial environmental and safety concerns but because it threatens their wallets.

“Given the fleeting benefits of construction jobs, the unprovability of long term benefits and the negative effect of higher gasoline costs on consumers, Keystone XL is no economic boon to the United States. US consumers and the overall economy would bear the substantial risks of the pipeline without measurable permanent benefits.”