Oil pipeline shipping rates will keep rising at the old, faster rate

US energy regulators have withdrawn a proposal that would have slowed the annual increase in oil pipeline shipping rates. This means pipeline companies can continue to raise their rates each year based on a higher inflation index.

For years, oil pipeline companies have been able to increase their shipping rates annually using a specific inflation index. Regulators considered lowering this index, which would have meant slower rate increases for companies that ship oil. By withdrawing the proposal, regulators are allowing the existing, more favorable rate increase mechanism to continue, which benefits pipeline operators.