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Bloomberg’s Will Kubzansky and Lucia Kassai report that California, facing refinery closures and stubbornly high gas prices, is increasingly importing gasoline from the Bahamas. In November, the state brought in record volumes of fuel, with more than 40% routed through the island nation before continuing to the West Coast.
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Because of the century-old Jones Act, shipping fuel directly between U.S. ports requires expensive U.S.-flagged vessels that are in short supply. By sending gasoline to the Bahamas first, suppliers can use foreign tankers and cut costs — even if it means thousands of extra miles at sea. With more refinery shutdowns ahead and no pipelines linking the Gulf Coast to California, this roundabout supply chain may become the new normal.
Read more in Yahoo! Finance here.
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