Trump Administration Extends Jones Act Waiver to Ease Fuel Prices

The White House announced a 90-day extension of a waiver to the Jones Act, the 100-year-old law that normally requires U.S.-flagged vessels for coastwise shipping. The extension allows foreign-flagged ships to move gasoline, diesel, crude oil, petrochemicals, natural gas and fertilizer between U.S. ports. For each voyage, the Defense Department must consult the U.S. Maritime Administration to determine whether a Jones-Act-compliant vessel is available.

The Hill

The waiver follows a March exemption and is presented as a response to higher energy costs tied to the war in Iran, which has limited shipping through the Strait of Hormuz. The resulting strain on global oil markets has pushed U.S. fuel prices upward, prompting the administration to seek temporary relief for consumers and the military.

The Hill

At the time of the announcement, the average U.S. gasoline price was about $4.01 per gallon, roughly 87 cents higher than the same period a year earlier, according to the American Automobile Association. The briefing also noted that the nation’s strategic petroleum reserve had fallen below 300 million barrels, a level not seen since the 1980s.

The Hill

Allowing foreign vessels to transport essential fuels aims to blunt price spikes for consumers and support military logistics. The limited scope and required Defense-Maritime consultation reflect an effort to balance cost relief with concerns voiced by the domestic shipping industry, which has expressed opposition to broader exemptions.

The Hill