JONES ACT WAIVER IS SAVING LESS THAN A THIRD OF A PENNY

Nearly 200 days after the Jones Act was waived in an effort to ease fuel costs, gasoline prices remain virtually unchanged while diesel prices have climbed substantially, raising questions about the waiver’s effectiveness. When the waiver was extended in May, regular gasoline averaged $4.48 per gallon nationwide and diesel was $5.60. Today, gasoline remains around $4.47 per gallon, while diesel has risen to more than $6.30 per gallon, according to the U.S. Energy Information Administration. Meanwhile, a Navigistics Consulting analysis estimated that the maximum theoretical impact of the Jones Act on the national average price of gasoline is just $0.0027 per gallon — less than one-third of a cent.

Fuel prices have remained elevated amid broader market pressures, including disruptions involving the Strait of Hormuz, attacks on Russian refining capacity, constrained inventories and limited refining capacity. Those factors, rather than a shortage of foreign vessels available for domestic transportation, have been identified as major drivers of current fuel prices.

The American Maritime Partnership noted that the continued high cost of fuel, growing waiver requests and questions surrounding voyage reporting underscore the need for rigorous case-by-case review. U.S. vessels and American mariners should be utilized whenever available, while existing waiver requirements are enforced and the capacity reserved for the U.S. domestic trade is protected.

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