December 3, 2018 / 10:53 PM / 12 days ago

Colonial Pipeline shippers complain to regulators about charge increase

NEW YORK, Dec 3 (Reuters) - Shippers on Colonial Pipeline, including BP Products North America Inc and Chevron Products Co, complained to U.S. regulators about a hike in a surcharge to ship fuel on its system, saying the move violated the law.

* The companies allege that the proposed increase will raise the shippers’ costs to transport fuel on Colonial, the country’s largest fuel network, by about $7 million annually in aggregate if they are considered long-haul movements, according to the complaint to the U.S. Federal Energy Regulatory Commission late on Friday

* The companies said Colonial proposed to increase the charge without filing a tariff stating the charge’s amount, which is a violation of FERC regulations

* Colonial did not immediately respond to requests for comment

* The complaint came from nine shippers, including Valero Marketing and Supply Company, Phillips 66 Co and Trafigura Trading LLC

* The companies urged FERC to order Colonial to stop collecting the charge until it files the increase with regulators and justifies the increase, the complaint said

* Colonial Pipeline connects Gulf Coast refineries with markets across the southern and eastern United States through more than 5,500 miles (8,851 km) of its pipeline system

Reporting by Stephanie Kelly in New York

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