BlockBeats news, on August 5, according to Reuters, the U.S. government is expected to extend the temporary waiver of the Jones Act in the coming days to alleviate domestic fuel supply pressures and reduce gasoline prices.
The Jones Act requires that goods transported between U.S. ports be carried on vessels that are U.S.-built, U.S.-owned, and operated by U.S. crews. This waiver aims to enhance flexibility in energy transportation and alleviate fuel supply bottlenecks. The current waiver, set to expire on August 16, has become the longest-lasting suspension in the Act’s history, having been invoked nearly 200 times over the past approximately four and a half months.
U.S. Energy Secretary Chris Wright stated that the exemption has helped lower energy prices in California and parts of the U.S. East Coast, and the government is expected to continue extending the policy. However, analysts believe the measure has limited impact on oil prices and may only reduce gasoline prices by a few cents.
There is currently division within the U.S. government regarding expanding the scope of exemptions. Some Republican lawmakers and shipping industry organizations worry that overly relaxing the Jones Act could undermine U.S. domestic shipping capacity and national security interests.
Meanwhile, Trump has faced political pressure due to rising oil prices and declining approval ratings. Multiple polls show his approval rating has dropped to around 32%-34%. In response, Trump dismissed the surveys as "fake polls" and claimed his true approval rating is "the best ever."
Recent conflicts in Iran have disrupted energy transportation, causing U.S. gasoline prices to rise above $4 per gallon again. The Trump administration is attempting to reduce consumer fuel costs by increasing flexibility in energy transportation and pressuring oil companies.