AAA says more pipelines could impact gas prices

WASHINGTON, Jan. 27 (UPI) -- Time will tell what impact the addition of new pipeline networks in the United States will have on gasoline prices, an AAA spokesman said Monday.

AAA spokesman Michael Green said in response to email questions "robust" pipeline infrastructure is necessary to keep petroleum supplies even and prevent regional price spikes.


"Improvements in pipeline infrastructure can help balance supplies with regional demand throughout the country and limit local price spikes," he said. "A strong pipeline infrastructure is important for limiting volatility and ensuring that increased production reaches the U.S. consumers that need it most."

Last week, TransCanada announced the first shipments of crude oil were sent form Cushing, Okla., from its Gulf Coast project. Green said that could make crude oil more expensive in the central states, but less expensive along the southern coast, where most refineries are located.

"It will take time to see exactly what effects this might have for U.S. drivers," he said.

AAA reports a national average price for a gallon of regular unleaded at $3.28, relatively unchanged from previous weeks. Monday's average price, however, was 6 cents cheaper than it was at the same time last year.


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