The Index Nobody Asked For
The cut is smaller than FERC proposed; a single return-on-equity adjustment lifted the index and handed pipelines about $4.5 billion more than the November proposal, on a contested method headed for the same court that vacated the last one.
The cut is smaller than FERC proposed; a single return-on-equity adjustment lifted the index and handed pipelines about $4.5 billion more than the November proposal, on a contested method headed for the same court that vacated the last one.
FERC reset the formula that caps interstate oil-pipeline rates at inflation minus 0.55%, a level higher than its own proposal and supported by no party in the record, effective July 1.
Why it matters: Pipeline transport cost is folded into the price of every gallon, jet ticket, diesel fill, and propane tank — a small share that still rises under this ceiling every year for five years.
Date to watch: July 1, 2026 — new index takes legal effect and pipelines file annual ceiling updates; rehearing window runs immediately after.
Sources:
- FERC — FERC Finalizes Five-Year Review of the Oil Pipeline Index (final rule press release, RM26-6, 195 FERC ¶ 61,062) (2026-04-24)
https://www.ferc.gov/news-events/news/ferc-finalizes-five-year-review-oil-pipeline-index - U.S. GAO — Report B-338361 on FERC's Five-Year Review of the Oil Pipeline Index (effective date June 29, 2026; RIA revenue figures) (2026-04-29)
https://www.gao.gov/products/b-338361 - FERC — Chairman Swett's Concurrence to Five-Year Review of the Oil Pipeline Index (2026-04-24)
https://www.ferc.gov/news-events/news/chairman-swetts-concurrence-five-year-review-oil-pipeline-index - FERC — Oil Pipeline Index general information page (RM26-6-000; PPI-FG minus 0.55%, July 1, 2026–June 30, 2031) (2026-04-24)
https://www.ferc.gov/general-information-1/oil-pipeline-index - FERC — Commission Initiates Rulemaking on 2025 Five-Year Review of the Oil Pipeline Index (NOPR, PPI-FG minus 1.42%) (2025-11-20)
https://www.ferc.gov/news-events/news/commission-initiates-rulemaking-2025-five-year-review-oil-pipeline-index - FERC — Commission Addresses Five-Year Index Level for Interstate Oil Pipeline Rates (2021–2026 cycle, true-up relief, 90-day notice) (2025-11-20)
https://www.ferc.gov/news-events/news/commission-addresses-five-year-index-level-interstate-oil-pipeline-rates - FERC — November 2025 Open Meeting (official archived webcast; on-camera commissioner statements) (2025-11-20)
https://www.youtube.com/watch?v=_Cxq0gORq8c
The Throughline decodes today's headline — with receipts. Every claim is sourced; links below.
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