LETTER If pipeline is reversed, consumers will lose
As the leaders of companies that serve Pennsylvanians each day, we couldn’t disagree more with the op-ed by state Reps. Jim Christiana and Gary Day that appeared in the Jan. 8 edition, “Consumers win when policies encourage fair competition.”
Christiana and Day argued that Pennsylvania consumers will benefit if the Laurel Pipeline is reversed. As a matter of fact, if the pipeline is reversed, the exact opposite will occur: Consumers will lose because of higher prices and fewer choices. The only winners will be Buckeye Partners and the Midwestern refiners that would gain a captive market in Western Pennsylvania.
There is little upside but plenty of downside from the proposed reversal. Midwest refiners already have access to Pennsylvania markets and currently compete with supply from the East Coast. For eight months per year, East Coast supply is actually cheaper. The reversal would eliminate competition from the East Coast which, in turn, will leave Western Pennsylvania solely dependent on Midwest refiners. Less competition means higher at-the-pump prices for consumers. The reversal also threatens the jobs of thousands of employees at the Philadelphia-area refineries that have served Pennsylvania for over a half-century.
Eliminating East Coast supply would also leave Western Pennsylvania vulnerable to supply shortages and price spikes if and when there are disruptions at Midwest refineries or on Midwest pipelines. In fact, Midwest refiners already struggle to meet Midwestern demand today.
There is no rational argument supporting Buckeye’s claim of lower prices for consumers. The only winners here will be Buckeye and Midwest refineries — not Pennsylvania families, businesses and workers. If the reversal were truly a win for consumers, we would be the first to support it.
Mike Lorenz
Altoona
Polly Finn
O’Hara