Fuel Retailers Urge FERC to Abandon Monopolistic Pricing Plan
News related to:NATSO, Inc · 2 min read
ALEXANDRIA, Va., Oct. 22, 2026 /CourierPR/ -- Fuel retailers and trade associations are urging the Federal Energy Commission (FERC) to abandon a proposed plan that would grant monopolistic pricing power to interstate oil pipelines. The move could significantly increase fuel costs for consumers, according to NATSO, SIGMA, and the National Association of Convenience Stores (NACS).
NATSO, representing truck stops and travel centers, and SIGMA, the national trade association for independent fuel marketers and chain retailers, joined forces with NACS, which represents more than 1,000 retail member companies cumulatively representing over 200,000 stores in 50-plus countries, including 90,000 stores in the United States. Together, these organizations argue that the proposed plan would violate the Interstate Commerce Act and raise fuel prices, which is contrary to the current administration's efforts to keep fuel prices as low as possible.
In a letter to the five FERC Commissioners, NATSO, SIGMA, and NACS emphasized that permitting pipelines to discriminate among shippers would not benefit consumers. Instead, it would merely govern the allocation of monopoly profits between the pipeline and its favored shipping affiliates. The organizations are confident that such a move would impose significant upward pressure on the prices consumers pay for diesel and gasoline, which is particularly concerning given the current efforts by the federal government to bring these prices down.
The Interstate Commerce Act prohibits oil pipelines from discriminating between shippers and requires them to charge "just and reasonable" rates for the transportation of oil through interstate pipelines. Any ability to negotiate individual shipping contracts would create unequal rates and classes of shippers with inequitable pipeline access, leading to significantly higher delivery costs.
NACS, which has more than 1,000 retail member companies that cumulatively represent over 200,000 stores in 50-plus countries, including 90,000 stores in the United States, supports the existing regulatory framework and questions the rationale for opening the rulemaking process without determining a prevailing problem and without examining the impact it would have on American consumers.
The organizations are urging FERC to abandon any plans to initiate a rulemaking that would permit interstate oil pipelines to negotiate transportation rates individually with shipping companies. They argue that such an approach would raise fuel prices and violate the Interstate Commerce Act, ultimately harming consumers, retailers, and the broader market.