Buckeye rejects allegations it overcharges to transport jet fuel

Thu Oct 11, 2012 8:00am EDT
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(Reuters) - Buckeye Partners LP BPL.N rejected allegations by four major U.S. airlines that it was overcharging to transport jet fuel to New York City area airports and requested that the Federal Energy Regulatory Commission dismiss the complaint.

Delta Air Lines Inc DAL.N, JetBlue Airways Corp JBLU.O, United Continental Inc UAL.N and US Airways Group Inc LCC.N filed the complaint last month alleging a Buckeye unit of charging "unjust and unreasonable" rates to transport fuel to the Newark Liberty, John F. Kennedy and La Guardia airports.

Buckeye said the complaints were irrelevant because rates charged by Buckeye Pipe Line Co LP were set under an FERC-approved program that ties rates to competitive levels.

Buckeye shares closed at $47.39 on the New York Stock Exchange on Wednesday.

(Reporting by Sunayan Bhattacharjee in Bangalore; Editing by Saumyadeb Chakrabarty)