Stronger US Gulf Coast gasoline prices Wednesday morning were attributed to market talk that the US government's recent waiver of the Jones Act, allowing foreign tankers from the Gulf of Mexico to supply the Northeast with fuel after Hurricane Sandy, may be extended beyond its original deadline, market sources said.
So far, however, the US Department of Transportation has not commented on an extension.
The Jones Act law requires goods moved between US ports to be carried by US-built ships and staffed by US crews.
The waiver, effective from November 2, required petroleum product shipments to leave the Gulf Coast by November 13 and arrive in the Northeast by November 20.
At least three gasoline traders had heard the rumor Wednesday but were mixed on whether there was any truth to it.
Even if it was true, it "won't make any difference anyway" because "things are easing up a lot here now," a New York source said of the gasoline supply situation along the East Coast.
Another source agreed, adding there are "no lines for gas on Long Island anymore."
So far, nine companies plan to transport petroleum products and fuel additives to the region hit by Sandy, the Department of Transportation said Tuesday.
The companies planned to use the waiver for a total of 10 shipments, the agency said. It would not identify the companies or disclose any other details about the shipments.
Tuesday was the last day companies could load foreign-flagged vessels under the waiver.
