The price of fuel in the Caymans

Point is that the "price" of a US gallon in US dollars and an imperial gallon in Cayman dollars ought to be about the same number because the gallon and the dollar in Cayman are bigger by about the same amount over the US gallon and dollar. Duties in Cayman may be higher or lower than excise taxes in different places in the US. Shipping cost is not really much of an excuse since much of the gasoline in the US travels farther from the refinery than gasoline to Cayman. Pipelines are cheaper than ships but a lot goes by barge and truck which are more expensive, and there is at least as much handling and drayage at the destination as there is in Cayman. One is left with the distinct feeling that the Cayman market participants engage in cooperative pricing to maintain a markup of 40-50%.

The dealers set the price, not the distributors. Whether it is Esso or Texaco, the stations set their own prices. Just FYI all the retail dealers are all working together to keep the prices high, No Sherman in Cayman. But... They are digging their own graves with their greed, as more regulations soon come.

I find all this angst about the use of the term "The Caymans" so funny.  Of course it is acceptable to refer to the Caymans.  That reference has been used commonly for a long long time.

Just for comparison and education from a guy that lives in the US.

I live in Montana, where the cost of living is pretty high due to the relative remote location (of course, not as remote as The Cayman Islands.)

We are currently paying $3.65 a gallon for regular unleaded gas, up to $3.95 for Premium (higher octane, I'm not sure what octane you ge there normally.) Of that, about $0.40 per gallon are fuel taxes (road improvements, etc.), so the non-taxed price is closer to $3.45US a gallon. We don't have sales tax here, so other US locales could be 10% higher, and of course, many states and local governments impose additional taxes so the price can vary widely.

My father lives in Oklahoma, which is not only closer to the refineries, but also has lower taxes, so he may pay $0.50-$0.80 a gallon less than we do here.

I think the net of the situation is just like anything else, supply and demand, and how difficult something is to acquire will define it's pricing. I'm assuming there is no direct refinery pipeline to The Cayman Islands, thus the fuel is brought by ship, which increases the costs, as well as the remote location means it not only has to go a long way, but also pass through a lot of "hands" to get there, each of which takes a cut.

I guess one advantage there is the relative small location you're dealing with. To go to the "shops" here is a 25 mile drive each way, so 50 miles round trip. Even in a high mileage vehicle, which we don't actually have, you can burn through a lot of fuel just getting basic necessities.

That being said, I'll take prices here over prices there. ;->

I don't believe the fuel comes from the USA, but South America?

Electric cars in Cayman won't solve any problems, CUC prices are astronomical.  However, I understand the gas price issue.  If I recall correctly, the gas prices here may have higher government takes, but more importantly I think it was something like a profit of 20% or so on gas itself, whereas in the US, they make a few pennies per gallon.  So in reality, the profit margins on gas here are the real issue.  For that matter, every business on island thinks they deserve a profit margin of 20%+, hence the real cost of living here is high.  Just check out any product and compare to US, then add in shipping& duty and there is still a 20% margin.  Must be nice to be in business here...hmmm maybe I will start my own!

I don't know where you got $2.66 per gal from. According to a news report yesterday the U.S. national average is $3.59. Some places are over $4. Big difference.

http://www.eia.gov/petroleum/gasdiesel/

Also those are for U.S. gallons not imperial gallons.

If you are going to make a point at least get your facts straight.

 

"For months it hasn't changed.  It's been $5.73 CI for a l-o-o-n-ng time".

Be thankful. In GCM it is almost $6.00 and has been there for months.

I understand there will be an energy problem with electric cars within the next 20 years. It takes fuel to make  toenergy. my 2years. but you are right about the prices at the pump always quick to go up but very very slow to come down. FYI prices in Canada are also high approx 1.25 to 1.29 per liter x 5 in our imperial gallons and you do the math. US gallons only have 4 liters :)

and the solutions include many factors !