URCO addresses Fuel Price Increase Message

The Utility Regulation and Competition Office (URCO) wish to address a message 
currently circulating which claims that retail fuel prices will increase to CI$7.00 per gallon 
this week and urges motorists to rush to filling stations. 

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. 

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 3 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. 

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. 

For up-to-date fuel prices please visit URCO's website a https://www.ofreg.ky/fuel/retail-fuel-prices