ExxonMobil has raised objections against Colonial Pipeline's proposed modifications to fuel shipping terms, expressing concerns about the negative impact it may have on shippers and consumers. The Colonial Pipeline plays a significant role in transporting fuel from the U.S. Gulf Coast to the East Coast, especially as refining capacity in the region has decreased, making pipeline shipments the most efficient way to meet local demand.

Colonial had requested approval from the Federal Energy Regulatory Commission (FERC) to discontinue simultaneous shipping of different gasoline grades and to eliminate Grade 5 gasoline shipments. The pipeline company argued that these changes would enhance operational efficiency and reduce delays.

Exxon argued in its protest notice that Colonial's proposed tariff adjustments would disrupt the gasoline supply chain's effectiveness. On the other hand, Colonial justified the changes as measures to streamline operations without causing significant interruptions.

Exxon criticized the changes, claiming they would benefit Colonial while adversely affecting the financial interests of other participants in the supply chain. Responding to Exxon's objections, a Colonial spokesperson mentioned that the company would address the concerns raised.

If approved, the alterations would restrict shippers from transporting gasoline products with higher Reid Vapor Pressure (RVP), though Colonial could still distribute these products to downstream markets. Some gasoline marketers, who preferred to remain anonymous, revealed that they were considering legal action to challenge Colonial's proposed changes if implemented.