Keystone Pipeline Shutdown May Raise Midwest Gasoline Prices by 5%

The Keystone oil pipeline, a critical infrastructure that transports crude oil from Canada to refineries in the U.S. Midwest, has been shut down, raising concerns about potential increases in gasoline prices. The shutdown is expected to disrupt refinery operations in Texas and Oklahoma, which could lead to a 3–5% increase in gasoline prices in midwestern states. This disruption is anticipated to be felt within one or two days, with a more significant impact on diesel and jet fuel, which are essential for various industries, including transportation and agriculture.

The shutdown is preventing thousands of gallons of Canadian oil from reaching the U.S., which could exacerbate the situation. The prolonged shutdown could have a greater impact on diesel and jet fuel, which are crucial for various industries. The increased cost of diesel could potentially drive up grocery prices, as diesel trucks are essential for transporting goods across the country. This ripple effect could be felt in various sectors, including retail and manufacturing, as higher transportation costs could lead to increased prices for consumers.

According to Ramanan Krishnamoorti, the impact on gasoline prices could be felt within one or two days, with a more significant effect on diesel and jet fuel. The disruption could also ripple through the economy, driving up grocery costs as diesel trucks are essential for transporting goods. The shutdown is blocking thousands of gallons of Canadian oil from reaching the U.S., which could lead to higher gasoline prices in the Midwest. The prolonged shutdown could have a greater impact on diesel and jet fuel, which are crucial for various industries, including transportation and agriculture. The increased cost of diesel could potentially drive up grocery prices, as diesel trucks are essential for transporting goods across the country. This ripple effect could be felt in various sectors, including retail and manufacturing, as higher transportation costs could lead to increased prices for consumers.