Trump extends the Jones Act waiver for 90 days in an effort to curb fuel prices

President Donald Trump has extended the Jones Act waiver, allowing for foreign ships to transport goods between U.S. ports as part of the administration’s ongoing efforts to curb fuel costs.The president issued a 90-day extension of the Jones Act waiver on Friday, with the current waiver set to expire in two days. The Jones Act is a law that requires all goods transported between U.S. ports to be moved by ships that are U.S.-built, flagged, and crewed.The administration first issued its Jones Act waiver in March, shortly after the start of the war in Iran, which has sent global fuel prices soaring. The waiver is intended to minimize disruptions to fuel transportation and provide the shipping industry greater flexibility. A White House official told the Washington Examiner that since the waiver was first issued, an additional 90 million barrels of products have been shipped between U.S. ports, which includes 27 million barrels of gasoline, 26 million barrels of crude oil, and 6 million barrels of renewable fuels.Leading up to the midterm elections, the Trump administration has taken several steps to lower gas and diesel prices, including allowing for greater access to red-dyed diesel, encouraging state-level gas tax suspension, and striking a deal with Russia for fuel.GasBuddy analyst Patrick De Haan told the Washington Examiner earlier this month that the Jones Act waiver has been one of the most significant factors in keeping prices from rising as much as they otherwise would have.“If it wasn’t for the Jones Act waiver, I would say that gas prices and diesel would be quite a bit more elevated,” De Haan said.He added, “The Jones Act has been really a lifeline for the shipment of gasoline, diesel, jet fuel, etc. For those shipments to go where they need to because without the Jones Act waiver, you have to find a U.S. crew at a much higher price and only a certain amount of vessels are U.S. vessels that meet the Jones Act.”The wars in Iran and Ukraine have crimped the global fuel supply chain, specifically, with the shipments in the Strait of Hormuz remaining constrained.As of Friday, the national average price of gas stands at $3.87 per gallon. The national average price of diesel is at $6.06 a gallon, according to AAA. The Trump administration’s waiver of the Jones Act is the longest in the law’s history.HOUSE ADVANCES SIX BILLS TO EXPAND NUCLEAR ENERGYHowever, some lawmakers and those in the domestic shipping industry have rallied against furthering the Jones Act waiver, arguing that the law is meant to protect domestic shippers.The American Maritime Partnership, in a statement on Friday, said it “calls for a prompt end to the waiver and looks forward to working with the Administration to advance our shared goal of restoring American maritime dominance by unleashing investment in rebuilding and growing the U.S. domestic fleet.”