Gasoline Price Changes - Federal Trade Commission

GASOLINE PRICE CHANGES:
Millions of Barrels
1,000
800
600
400
200
0
-200
-400
-600
-800
Source: EIA
Figure 4-9: Net Shipments of Gasoline to other PADDS
I II III IV V
Source PADD
A large system of refined product pipelines connects the Gulf Coast with all other PADDs –
except portions of PADD V on the West Coast. Tankers sometimes deliver gasoline supplies
from the Gulf Coast to the West Coast. 41
2. The East Coast (PADD I) produces some gasoline but also relies
heavily on deliveries from the Gulf Coast and, to a lesser extent,
imports from Canada, the Caribbean, Europe, and South America.
Refinery production of gasoline in the East Coast increased from about 225 million
barrels in 1985 to about 389 million barrels in 2003. 42 Despite the increase in refining capacity
that this change reflects, the East Coast still consumes far more gasoline than its refineries
produce. See Figure 4-6, supra.
Indeed, the East Coast typically receives a far greater proportion of its gasoline from the
Gulf Coast (almost 55 percent in 2003) than East Coast refineries produce (about 33 percent in
2003). 43 Foreign imports also represent a substantial source of supply for the East Coast,
accounting for about 15 percent (315 million barrels) of the gasoline consumed in PADD I in
2003. 44 See Figure 4-6, supra.
Gasoline supply conditions vary within PADD I. About 95 percent of the refining
capacity in the East Coast is located in Pennsylvania, New Jersey, and Delaware. 45 Thus, large
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FEDERAL TRADE COMMISSION, JUNE 2005