Almost exactly four years ago, amid an energy crunch triggered by Russia’s invasion of Ukraine, my colleague Alfredo Carrillo Obregon and I argued that Puerto Rico was overpaying for energy because the Jones Act restricted its access to American energy supplies. The evidence at the time was indirect but compelling, based on a comparison of Puerto Rico’s fuel imports to those of the nearby, Jones Act–unconstrained Dominican Republic.
The US, we found, accounted for a meager 0.02 percent of Puerto Rico’s LNG imports in 2019 versus 10.8 percent of the Dominican Republic’s, and by 2021 the Dominican Republic’s share had risen to 96.4 percent while Puerto Rico’s had fallen to 0.002 percent. Propane and fuel oil also showed a stark divergence. The logical conclusion, based on sourcing decisions by market participants, was that Puerto Rico was almost certainly overpaying for energy it could have bought more cheaply from the country it’s part of—if not for the Jones Act.