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Canada to Blame for Higher Gas Prices?

March 14, 2011

In the past month, Americans have seen a substantial increase in gas prices and people are wondering who to blame. According to Philip Verleger of the Star Tribune, out of Minneapolis, Minnesota, Canada is who everyone should be pointing their fingers toward. In Verleger’s opinion it’s not OPEC who is manipulating the gas market, but it is Canada who is moving gas prices up, especially in the Midwest. You may be asking, what does Canada have to do with gas prices? One simple answer, the Keystone XL pipeline project. The proposed project, that would run through 6 plains states, will boost the control that the Canadian oil industry has on the US market and some of the effects will be devastating to people living in the central United States.

U.S. farmers, who spent $12.4 billion on fuel in 2009, according to the U.S. Department of Agriculture, could see expenses rise to $15 billion or higher in 2012 or 2013 if the pipeline goes through.

At least $500 million of the added expense would come from the Canadian market manipulation.

Of course, American consumers will pay the price of this highway robbery. Food prices will rise because they reflect farm operating costs.

In addition, millions of Americans will spend 10 to 20 cents more per gallon for gasoline and diesel fuel as tribute to our “friendly” neighbors to the north.

TransCanada, the large Canadian oil company that has proposed the pipeline, claims the pipeline will reduce the US’s dependence on Middle Eastern oil. However, they have failed to address the price increase of the oil that will be coming from Canada. The dependence for Middle Eastern oil is then replaced by dependence on Canadian oil, at an inflated price. Verlerger expresses the same sentiments as so many others within the US…

Proposals to build the Keystone pipeline, in their present form, should be rejected. U.S. consumers should not have to pay a $5 billion duty to Canadian oil companies for an insurance policy of little value.

The entire project should be redesigned to address environmental concerns and to make sure Canadian oil companies cannot tax American consumers and farmers.

TransCanada is still waiting on approval of the project from the US State Department. They are expecting a final decision to be made within the next few months.

One Comment leave one →
  1. Tracy Benkie permalink
    April 28, 2011 10:31 am

    The gas prices are more expensive in Canada than the US

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