Multi-million-dollar relief package targets fuel and electricity costs

Government has announced a $9-million “relief package” to protect Cayman families from rising gas prices at the pumps and on electricity bills.

The plans, including a total duty exemption on imported gasoline, diesel and propane, were announced Wednesday by the NCFC coalition government.

The aim is to cut gas prices and electricity bills, which are typically more expensive in the hot summer months, and this summer is forecast to be particularly hot.

The intervention comes amid escalating conflict in the Middle East, which has caused surging oil prices across the globe.

Regular gas has reached CI$6.34 a gallon in Grand Cayman, according to the latest OfReg retail survey, compared with CI$4.69 a year ago.

Diesel is up from CI$5.10 to as high as CI$7.09 a gallon over the same period.

Government leaders said they were forced to intervene, with no end in sight to the spiralling costs on already strained household budgets.

The measures will last four months – covering June through September consumption – and include a cap of CI$0.18/kWh on what CUC and Island Energy can charge residential customers for fuel.

That’s set against a projected rate of as high as CI$0.24/kWh without intervention, an increase of more than 70% compared to the same period last year.

The package could mean combined savings of more than CI$150 a month for the average family.

Government estimates the electricity cap alone will save households consuming around 1,750 kWh a month up to CI$105 on their bills.

Rubis wholesale director Andres Barthel, speaking before the announcement, told the Compass that a duty waiver would be “immediately reflected at the pump” – worth 75 cents a gallon on gasoline.

For a mid-size SUV taking on 18 gallons, the duty waiver equates to CI$13.50 per fill-up, or around CI$54 a month for a family filling up once a week.

Nearly 90% of residential customers across the three islands will benefit automatically on their electricity bills, with no application required.

Premier André Ebanks said the measures would help families get through a difficult summer.

“We are acting before the summer bills arrive, not after. This is not simply a crisis response. It is the first step in a long-term plan to make Cayman’s energy system more efficient, more resilient and more affordable for every family.”

The duty waiver, estimated to cost government CI$4 million. covers all fuel types at the pump and propane used for cooking.

The electricity fuel cost cap accounts for the remaining CI$4.7 million of the package.

Acting Finance Minister Nickolas DaCosta said, “By delivering automatic relief to nearly 90 per cent of residential electricity customers, we avoid the delays of individual applications and return money to people’s pockets quickly.”

CUC President and CEO Richard Hew added, “This will provide cost relief for our residential customers during the upcoming summer months, when consumption and weather temperatures peak.”