29/04/2026
We are continuing to monitor fuel prices in light of the situation in the Middle East and, at this point, our position remains unchanged. Based on what we are seeing internationally, fuel prices are expected to remain under upward pressure unless there is a material change in global conditions. The link between conflict in one of the world’s most significant oil-producing regions and higher fuel prices is well established and widely reported. What the Cayman Islands is experiencing is consistent with what is being seen across the region and globally.
It is also important to clarify a common misconception. While fuel delivered to Cayman is often shipped from the US Gulf Coast or regional terminals, this does not mean Cayman pays a “US price.” Fuel products delivered to Cayman may also originate in part from the North Atlantic regions as well. In any event, refined petroleum products are globally traded commodities. Pricing is driven by international benchmarks and influenced by factors such as crude oil prices, refinery margins, shipping and freight costs, insurance, foreign exchange movements, and regional supply and demand. The point of shipment is a logistical consideration - not a pricing mechanism. When these global cost drivers move, Cayman’s landed replacement cost moves accordingly, typically with a short lag depending on shipment and inventory cycles, and this is reflected at the pump and in electricity generation.
From a supply perspective, we are not aware of any disruption to deliveries into the Cayman Islands at this time. The more immediate issue is cost rather than availability.
What is within our control - and where our focus will be under the strengthened regulatory framework - is transparency and the scrutiny of margins. Global commodity costs are outside of local control. However, what can and will be examined locally are the margins, fees, cost recovery mechanisms applied within the domestic supply chain, along with regulation over vertical integration of suppliers and arbitrage practices.
The Government has been proactive in advancing legislative reforms that will give the Utility Regulation and Competition Office full authority to license and regulate fuel providers. This is a significant shift. It moves the framework from a safety permit-based system to a modern regulatory regime, allowing us to enhance structured price reporting, examine cost build-ups in detail, and provide the public with greater visibility into how final prices are formed. Transparency does not change global prices, but it ensures that local pricing components are fair, justified, and clearly understood.
Looking ahead, we are also considering how regulation can better insulate Cayman, as far as is practical for an import-dependent jurisdiction, from geopolitical shocks. This includes options such as minimum fuel storage requirements to buffer short-term volatility, diversification of supply sources, price-smoothing mechanisms to reduce sharp spikes, and the continued expansion of resilient renewable energy and storage so that a greater portion of our energy is not exposed to global fuel markets. These measures will not eliminate exposure entirely, but they can reduce it over time.
We will continue to monitor developments closely, engage with stakeholders, and provide updates to the public as more information becomes available.
