Oil Pipelines Get 1.4% Rate Bump Thanks to Government Math
Published Date: 5/19/2026
Notice
Summary
Starting July 1, 2026, oil pipelines will update their maximum rates using a new number based on the Producer Price Index for Finished Goods, adjusted down by 0.55%. This change means pipeline rates can go up by about 1.4% for the next year. Pipeline companies and customers should get ready for this small but important price update that keeps things fair and predictable.
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Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Oil pipeline rate ceilings rise 1.429%
If you are a pipeline company or a customer of oil pipelines, starting July 1, 2026 your index ceiling levels must be multiplied by 1.014290 (a 1.429% increase) to set maximum rates for July 1, 2026 through June 30, 2027. This multiplier comes from the Producer Price Index for Finished Goods, which averaged 257.7 in 2024 and 262.8 in 2025, with the change minus 0.55% equal to 0.014290.
Index methodology fixed for five-year period
The Commission set the oil pricing index factor at the Producer Price Index for Finished Goods minus 0.55% (PPI-FG-0.55%) for the five-year period beginning July 1, 2026. This decision means pipelines will use the same PPI-FG-0.55% methodology for rate ceiling adjustments during that five-year period.
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