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Gasoline-starved California is turning to fuel from the Bahamas
California relies on a Bahamas transshipment route to bypass costly US Jones Act shipping amid refinery closures, with over 40% of November gasoline imports sourced this way.
- California is now receiving more gasoline routed through the Bahamas, with shipments increasing and over 40% of imports in November coming from the Bahamas, adding costs to the fuel market.
- Refinery closures and pipeline gaps have increased California’s reliance on imports, while the Jones Act requires US-port shipments use US-built vessels, with only about 55 Jones Act-compliant oil tankers worldwide.
- Shipping data show the Silver Moon delivered nearly 300,000 barrels of gasoline to Los Angeles after loading in Freeport, and the Torm Dulce made a similar voyage earlier this month, with leasing tanks in the Bahamas to preserve margins.
- The Bahamas routing means the circuitous detour adds another layer of cost to California’s gasoline market, and closures could raise pump prices by 5 to 15 cents a gallon, encouraging Gulf Coast and Asian refiners to supply Californians.
- If freight costs continue to rise, US gasoline via the Bahamas could lose to South Korea and India, as last year California sourced 12% of imports there but recent freight shifts reduced cost advantages.
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8 Articles
8 Articles
Coverage Details
Total News Sources8
Leaning Left1Leaning Right4Center1Last UpdatedBias Distribution66% Right
Bias Distribution
- 66% of the sources lean Right
66% Right
L 17%
C 17%
R 66%
Factuality
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