Trump's Jones Act Waiver: A Drop in Gas Prices Unlikely

U.S. President Donald Trump is considering another suspension of the Jones Act to alleviate high gasoline prices ahead of the midterm elections.

The move, which would extend an emergency waiver imposed in March after crude prices skyrocketed due to the Iran conflict, may not have a significant impact on prices, however.

Shipping costs account for only a small part of what Americans pay at the pump, leaving Trump with limited room to cut prices through maritime policy.

Trump has directed the Department of Justice to investigate Big Oil for possible price gouging, accusing oil companies of keeping gasoline prices high despite global crude prices falling.

The initial 60-day exemption announced in March allowed foreign-flagged vessels to transport oil and refined petroleum products between domestic ports, but data showed that only a small portion of the waiver voyages were handled by American operators.