OfReg: Cayman fuel prices similar or lower than elsewhere in region

Utility regulator OfReg has released the results of a regional price comparison survey that shows fuel prices in Cayman are comparable to countries of similar size and much lower in some cases.

The regulator regularly monitors the cost of fuel that is imported to Cayman, which is currently sold at close to CI$7 per gallon for regular gasoline at local service stations.

Duke Munroe, executive director responsible for fuels at OfReg, said, “As well as our weekly price monitoring of fuel prices, OfReg regularly compares prices in the region and elsewhere as a means of benchmarking fuel prices in Cayman.

“This most recent comparison shows whilst prices are high everywhere, Cayman’s cost per gallon of gasoline at the pump is average and lower than some countries, such as the Bahamas, Bermuda, Barbados, Belize, Turks and Caicos, and the UK,” Munroe said in a press release.

The regulator said it recognises how much fuel prices, inflation and the rising cost of living generally are impacting consumers in Cayman.

While OfReg cannot control or set the price of petrol and diesel, retail fuel prices at the pump are published on the regulator’s website every week to help consumers find the best available prices.

There is also a frequently-asked-questions page which gives consumers information on why fuel prices are rising and how prices are set in Cayman.

Acknowledging that fuel prices have increased and are likely to rise further, OfReg CEO Peter Gough said global events, such as the war in Ukraine and rising inflation, are affecting the price of fuel across the world.

As the regulator for fuels, Gough said, it is part of OfReg’s role to protect consumers and ensure that any increases and decreases in price are properly and fairly applied by retailers.

He noted that, so far, local prices continue to reflect the changes in global and import costs.

“Retailers in some instances, have been absorbing some levels of increases in playing their part to assist consumers,” he said.

“OfReg also continues to work with importers and operators to ensure the Cayman Islands purchases fuel at a fair price on the market and has a reliable and steady supply of fuel,” Gough added.

Fuel quality investigation

Earlier this month, social media posts alleging a fuel quality issue at one of the Esso gas stations prompted an investigation by the regulator.

Samples were taken on the same day from the nozzles and tanks, and octane and cetane levels were tested. Both gasoline and diesel test results were above the minimum globally accepted standards, OfReg said.

The visual test results showed that all samples were clear and bright and that there was no indication of water, sediment, discolouration or cloudiness, according to a statement from the regulator.

Additional samples from the gas station and from the bulk storage tank at the Jackson Point terminal were collected for further testing overseas at an accredited lab, OfReg said, and added that it will publish the results when they become available.

OfReg carries out tests on octane, cetane and ethanol blend in fuels on a random basis, which includes checking for any evidence of contamination or tampering of any kind.

Gough said the regulator is seeking to procure more equipment that would allow even more frequent analysis of fuels on a broader range of quality parameters. “We expect to put this new equipment into use later in 2022,” he said.