But what does this more-than-century-old law, which originally was designed to support the shipping industry, have to do with the price of gas?
These factors have resulted in a smaller supply of American ships that are available to transport goods. And when there is limited competition, costs of ship construction and transportation increase.
Suspending the Jones Act allows foreign ships to transport oil and gas between ports within the U.S., which should lead to lower transportation costs and increased supply. This should ease gas costs over time – but we’re talking months, not days or weeks.
Should the Jones Act be permanently repealed, fuel prices would fall more steeply.
Another important cost impact of the Jones Act involves offshore wind energy.
Suspending the Jones Act for a couple of months, however, will have minimal impact on the U.S. offshore wind and other energy industries.
