US Government Extends Jones Act Waiver for 90 Days to Reduce Oil Prices

US President Donald Trump Extends Jones Act Waiver for 90-Day Period

The White House announced that President Trump has granted a 90-day extension to a shipping waiver, allowing for easier movement of oil, fuel, and fertiliser around the US. The move is part of a broader effort by the administration to curb rising energy costs linked to the ongoing conflict with Iran.

The waiver, which was initially set to expire on Friday, will now remain in effect until March 2024. The extension aims to provide certainty and stability for the US and global economies.

The Jones Act, passed in 1920, requires that goods hauled between US ports be moved on US-flagged vessels. Critics argue that this law slows the delivery of goods, including critical aid during times of crisis. In March, the White House suspended Jones Act requirements for 60 days as part of efforts to counter steep oil prices and cargo disruptions.

The administration has faced criticism over its handling of fuel price spikes, with some analysts estimating that waiving the Jones Act would decrease East Coast gas prices by a modest 3 cents but potentially raise costs on the Gulf Coast. Industry groups have also expressed concerns about the impact on American shipbuilders and workers.

White House officials stated that the extension will allow ample time for the maritime industry to ensure sufficient vessels are available to meet demand. The Jones Act has been a contentious issue, with supporters arguing it is crucial for maintaining a domestic shipping industry and national security, while critics argue it raises shipping costs and limits capacity.

Recent polling suggests that rising gasoline prices have become a significant concern for voters ahead of the midterm elections in November.

Source: Al Jazeera