The Trump administration has told US oil companies and shipping groups to prepare for a potential waiver of the century-old Jones Act governing domestic shipping to ease movement of fuel around the country, two sources familiar with the discussions told Reuters.
The announcement could come as early as Thursday, the sources said, and would be aimed at combating spiking fuel prices since the start of the US-Israeli war on Iran.
The White House did not immediately comment.
Under the Jones Act, goods shipped between US ports must be carried on vessels that are US-built, US-flagged and mostly US-owned. The requirement sharply limits the number of tankers available for domestic shipments.
Waiving the rule temporarily would allow foreign ships to carry fuel between US ports, potentially lowering shipping costs and speeding deliveries
The United States has issued Jones Act waivers in the past only sparingly, typically in response to major supply disruptions. The most recent waivers came after hurricanes such as Hurricane Harvey and Hurricane Maria in 2017.
At the time, the US Department of Homeland Security temporarily allowed foreign-flagged vessels to transport fuel between US ports to ease shortages and speed deliveries to affected regions.
(Reporting by Jarrett Renshaw; Editing by Richard Valdmanis and Chizu Nomiyama)
