Gas prices continue to drop in Grand Cayman, with at least one station selling fuel at $3.99 a gallon of regular gas.
Prices in Cayman have been falling since July 2014, from a high of $5.59 average across Grand Cayman. The lowest price as of press time Sunday is $3.99 for self-service regular gas at the Maedac Rubis station in Red Bay.
Gas prices in Cayman generally follow trends in the United States, where prices have started increasing again after hitting a low of US$2.04 national average for a gallon of regular in late January. Last week, the U.S. average was $2.27.
A Cayman Compass analysis of gas prices here, as reported by the Petroleum Inspectorate, compared to average prices published by the U.S. government, show that the difference in price has been getting higher for Cayman over the past five years.
Duke Munroe, with the Petroleum Inspectorate, said last week, “We continue to benefit from reducing price trend which can likely be maintained for a while or change depending on a number of factors within the control of the oil companies and naturally influenced by the global price trends.”
The difference in price has increased steadily over the past five years, from about $1.10 in January 2010 to $2.70 in January of this year, accounting for exchange rates and the difference between U.S. gallons and imperial gallons.
In his State of the Nation address earlier this month, Premier Alden McLaughlin said he wants to create a public utilities commission to oversee, among other things, the fuel sector. “We also want the two existing fuel companies to become more transparent to help ensure that residents are paying a fair price for fuel while allowing the oil companies an equitable profit,” he said.
Crude oil prices began to fall again last week, after making a slight recovery since late January, according to the U.S. Energy Information Assessment. Inventories piled up and hit a new record of more than 425 million barrels, the EIA reported.
If crude prices continue to decline, gas prices in the U.S. and Cayman could be expected to fall further. It remains to be seen if the price of crude has bottomed out or if it will continue falling.
The highest average price in Cayman over the past five years was $5.81 in June 2012.