Dear Editor:
Re: Firing back at Kinder Morgan prez, Letters to the Editor, July 10.
The Burnaby NOW published a letter from Robyn Allan suggesting that if the proposed Trans Mountain expansion project is approved, Metro Vancouver residents would pay higher gasoline prices.
The facts do not back up her claims.
Prices paid by local consumers at the pumps are driven by world oil prices, not Alberta oil prices, so any increase in price per-barrel as a result of Alberta producers accessing world markets due to expanded pipelines does not mean higher gasoline prices for locals.
Her argument also ignores the many factors that go into the price paid by consumers for gasoline – taxes, refining costs, seasonal fluctuations and the general rules of supply and demand.
The cost of crude oil makes up less than 50 per cent of the ultimate price you pay at the pump.
In addition, she ignores the reality in the Vancouver area, that refineries, including Chevron in Burnaby, cannot get enough raw product from Alberta by pipeline and are currently supplementing their supply by transporting crude oil on rail.
Our project would allow for more, not less, supply for both local refineries and world markets.
There are many independent sources for information about gasoline prices, and we encourage your readers to learn the facts. We suggest visiting Natural Resources Canada at www.nrcan.gc.ca and the Canadian Centre for Energy Information at www.centreforenergy.com for more information.
Scott Stoness, vice-president, regulatory and finance, Kinder Morgan Canada
