Pipeline tariff is the fee charged for transporting oil, gas, or other commodities through pipeline systems. Tariffs are typically regulated by government agencies and based on cost-of-service methodologies that consider construction costs, operating expenses, and reasonable returns on investment. Tariff structures significantly affect commodity economics and pricing.

Pipeline tariffs create geographic price differentials and influence supply chain decisions for commodity producers and consumers. Tariff changes can affect regional competitiveness and market access for different production areas. Understanding tariff structures helps assess transportation costs and regional pricing relationships in commodity markets.

Real-world example: The Keystone Pipeline charges $3.50 per barrel to transport crude oil from Alberta to Texas refineries, representing a significant cost component that affects Canadian crude competitiveness in U.S. markets and regional price differentials.