White House set to extend Jones Act shipping waiver, sources say
USO•The Trump administration is set to extend the Jones Act waiver in coming days, four industry sources said, with individual voyages subject to case-by-case review. One source said it could come as early as Thursday, while a White House official said no decision had been made.
1. Waiver extension expected
The Trump administration is set to extend a waiver allowing some foreign-flagged ships to transport oil and other commodities between U.S. ports, four industry sources said. The extension would require case-by-case reviews of individual voyages rather than blanket exemptions, two sources said; one source said it could come as early as Thursday.
2. Fuel prices and waivers
The administration has used the waiver to try to lower diesel and gasoline prices by increasing shipping flexibility and reducing transport bottlenecks. The waiver would likely reduce gasoline prices by only pennies per gallon, some analysts and industry experts have said. About 300 blanket waivers were provided in March and May, compared with about 48 exemptions since August.
3. Official says no decision
A White House official said no decision had been made on an extension. The administration last extended the waiver in August, through November 15. On Thursday, gasoline averaged about $3.91 per gallon, compared with $2.98 before the U.S.-Iran war, while diesel was $6.10, up from $3.76.
