Jones Act Waiver Unlikely to Cut Fuel Prices

However, U.S. shipping interests, maritime labor unions, and industry economists strongly oppose the move, arguing it would have negligible impact on consumer gasoline prices. They contend that crude oil costs, not domestic shipping, are the primary price driver.

Analysis by Overseas Shipholding Group CEO Sam Norton suggests foreign-flag tankers could even be more expensive for domestic routes (e.g., 14.5 cents/gallon vs. 13.5 cents/gallon Houston-New York) due to tight global markets.

Navigistics Consulting estimates a maximum theoretical reduction of only $0.0027 per gallon, noting that only about 6.5% of U.S. gasoline moves via Jones Act tankers. Critics also warn a waiver would undermine American maritime jobs, security, and investment, with potential savings likely captured by traders rather than consumers.

While Senator Ted Cruz supports the waiver for national security, the prevailing industry view is that the policy risks doing more harm than good to the domestic maritime sector without meaningfully alleviating pump prices.