NEW YORK, April 1 (Reuters) - The Federal Energy

Regulatory Commission (FERC) on Wednesday suspended Colonial

Pipeline's proposal to overhaul its gasoline shipments for seven

months to hear additional arguments from the company and

shippers that have protested the changes.

Colonial Pipeline last month filed a revised tariff record

for FERC approval, seeking to end overlapping shipments of

different gasoline grades, while also ending shipments of

so-called "Grade 5" gasoline sold in some Northeastern states

during the winter. The company also wants to modify delivery

specifications.

FERC said its review of the filing failed to show the

changes were just and reasonable, and that they may be unduly

discriminatory to shippers or otherwise unlawful. The regulator

suspended the revised tariff record till November 4, and gave

Colonial and its shippers 30 days to file additional written

comments on the matter.

Colonial said it respects the FERC's request for additional

information.

"We look forward to further supporting how our proposed

changes will safely increase capacity, benefit consumers in the

markets we serve, reduce operational stress on our system, and

otherwise enhance our integrity efforts," the company said in a

statement.

Oil majors including Exxon Mobil ( XOM ), Chevron Corp ( CVX )

and BP Plc had filed protest notices with the

regulator, citing potential harm to shippers and consumers in

order to boost Colonial profits.

Colonial rejected the arguments, saying they were driven by

the protesting shippers' focus on their own economics. It said

the proposed changes will allow it to ship up to 10,000 barrels

per day (bpd) more gasoline on its main gasoline pipeline, which

almost always runs full, benefiting both shippers and consumers.

In a separate ruling earlier this week, FERC allowed

Colonial to proceed with changes to its handling of two niche

gasoline grades traded in the Midwest, which the company has

said will boost pipeline capacity by 5,000 to 10,000 bpd.