The administration of U.S. President Donald Trump is moving to extend the Jones Act exemption in the coming days.
According to informed sources, this move is intended to increase flexibility in fuel transportation and help lower gasoline prices in the United States.
The Jones Act requires that goods be transported between U.S. ports on ships built in the United States and owned by U.S. companies.
They must also be crewed by U.S. nationals. The temporary waiver allows for some of these restrictions to be bypassed.
This helps facilitate fuel shipments and reduce bottlenecks.
The current exemption expires on August 16, after becoming the longest suspension of the law’s rules in the program’s history.
Government data showed that it was invoked about 200 times over a period of four and a half months through the end of July.
The move comes at a time when the average price of gasoline exceeds $4 per gallon.
Meanwhile, the U.S. administration is seeking ways to curb prices ahead of the November congressional midterm elections.
U.S. Energy Secretary Chris Wright confirmed that the waiver has helped lower energy prices in California and on the East Coast, suggesting it may be extended again.
Meanwhile, Trump has stepped up pressure on Exxon Mobil and Chevron,
He demanded that they lower prices and return a portion of their profits to consumers.
No final decision has yet been made regarding the extension of the exemption or the scope of its application.
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