Posted on May 11, 2026
It is time to permanently retire the political narrative that Jones Act waivers reduce gasoline prices. As we near the expiration of the 60 day Jones Act waiver announced on March 17th—and the start of an unprecedented 90 day extension—one fact is clear: voyages completed under the waivers granted to date have done nothing to lower prices at the pump. Florida is the largest market served by Jones Act vessels. Yet published records show that only two foreign flag voyages have carried fuel from U.S. Gulf Coast refineries to Florida since the waiver was enacted. In both cases, the freight rates paid were 50% to 70% higher than comparable Jones Act rates.
A range of data points confirms that shipping costs—whether on Jones Act–compliant vessels or on waiver enabled foreign flag ships—have only a minor effect on retail fuel prices. Shipping fuel from Houston to Fort Lauderdale on a Jones Act vessel costs less than 10 cents per gallon. Even in a world without the Jones Act, the potential savings from using foreign flag ships would likely be under 5 cents per gallon. Much of that difference reflects the reality that, as currently applied, waivers allow foreign shipowners to operate on domestic voyages without complying with other laws that apply to U.S. companies. No federal or state taxes are paid by the owners or their crews; minimum wage requirements are not enforced; and costs associated with FICA, Medicare, and unemployment taxes are avoided. Foreign owners also do not provide U.S.-standard health care or pension benefits. If foreign operators were required to comply with the same rules that create these costs for domestic owners, the adjusted cost gap between a Jones Act vessel and a foreign vessel would likely fall to less than 1 cent per gallon.
Put in perspective, Florida gasoline taxes are 39 cents per gallon; federal taxes add another 18.4 cents; and the cost of crude oil alone is more than $2.25 per gallon. Against that backdrop, it is misguided to blame rising gasoline prices on domestic shipowners—and equally unrealistic to assume that any small reduction in freight costs would be passed through to consumers. The Jones Act is a policy choice designed to sustain a U.S. maritime industry that operates at a cost disadvantage relative to international competitors. Broad waivers weaken that policy, reduce state and federal tax collections, confer unfair operating advantages on foreign carriers, and generate windfall profits for traders and oil companies rather than meaningful savings for drivers. Stated simply: waivers pursued for political gain are a bad idea. They should be used only to address genuine supply emergencies—and even then, only if foreign operators are required to comply with the same laws and regulations that apply to domestic owners.
