The Utility Regulation and Competition Office addressed a message currently circulating that claims retail fuel prices will increase to $7.00 per gallon this week and urges motorists to rush to filling stations.
The regulator said that this information is not accurate and misleading.
“While we do anticipate price increases soon, there is currently no indication that retail fuel prices will increase to that drastic level in the immediate term. Consumers are encouraged to rely on official communications and reputable sources for accurate information and to avoid unnecessary panic buying,” the Utility Regulation and Competition Office (URCO) stated.
The regulator also said that international oil markets have experienced volatility following recent developments in the Middle East and data reflects a continuing upward trend in prices over the past three months. However, fuel pricing in the Cayman Islands is influenced generally by the cost of product at the time it is purchased and shipped to the country.
Current pump prices reflect the cost of product already in supply. Recent deliveries received within the past week were purchased prior to the recent escalation; therefore, any future adjustments resulting from new deliveries will reflect the gradual introduction of higher-cost product into the country.
Historically, changes in global oil prices take time to flow through the supply chain before affecting retail prices locally. Any future increases would be expected to occur gradually as higher-cost shipments enter the market, rather than through a sudden and drastic adjustment. While further increases are anticipated to occur in the near term, and those increases are likely to be steeper due to the volatility in the market, any adjustments will reflect actual replacement costs and normal market processes, URCO indicated.
It also pointed out that fuel prices also differ between Grand Cayman and the Sister Islands due to additional transportation and distribution costs associated with supplying the smaller islands. However, even taking these factors into account, an abrupt increase to the level suggested in the circulating message is not anticipated in any of the Islands.
“There is currently no shortage of fuel supply and stations remain adequately stocked to
meet normal consumer demand. We are actively monitoring wholesale and retail fuel prices across all Islands and tracking market conditions closely and warn that any increases that appear inconsistent with underlying supply costs, normal distribution factors, or established pricing practices will be subject to regulatory intervention.
While we do not control the global price of oil, we remain committed to protecting consumers and ensuring that fuel pricing across the Cayman Islands remains fair,
transparent and reflective of actual market conditions,” the organisation said.
For up-to-date fuel prices, people can visit URCO’s website.
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