Gasoline Price Changes - Federal Trade Commission

THE DYNAMIC OF SUPPLY, DEMAND, AND COMPETITION
parts of the East Coast are within easy reach of gasoline that is refined in PADD I and then
transported by major pipelines and marine shipments to heavily populated and other nearby
areas. 46 In addition, two large pipelines, the Colonial and the Plantation, deliver gasoline from
the Gulf Coast to the East Coast, and one of those pipelines delivers gasoline as far north as the
New York area. 47 The two pipelines follow similar inland routes through the Southeast, and, in a
few areas, spurs of these pipelines expand farther west or go toward the Atlantic coast. 48
By contrast, New England has no refineries and no connections to the major pipelines
that deliver gasoline from the Gulf Coast to other parts of PADD I. Thus, New England depends
heavily on barge shipments from the New York City area, 49 as well as imports from Canada, the
Caribbean, Europe, and South America. Some areas of the Southeast, such as Florida, similarly
are unconnected to major refined petroleum products pipelines and are also heavily dependent on
water shipments for gasoline supplies from both the Gulf Coast and imports. See Figure 4-10.
Source: Allegro Energy Group
Figure 4-10: Major Refined Product Pipelines
3. The Midwest (PADD II) relies primarily on its own refineries and
gasoline supplies from the Gulf Coast.
Between 1985 and 2003, the amount of gasoline refined in the Midwest increased from
about 593 million to about 655 million barrels per year. See Figure 4-8, supra. Despite this
CHAPTER 4: THE REGIONAL LEVEL 85