Bush calls for fuel price transparency

| 14/01/2015 | 9 Comments

(CNS): As the local pump prices seem to be taking an age to reflect the international fall in oil prices, the opposition leader has called on government to intervene in some way to make the local fuel suppliers more transparent about why Caymanians are forced to pay so much for gas. McKeeva Bush has filed a private member’s motion calling for new laws to regulate the sector. In the meantime, he said, the real cost of fuel imported here should be published and a forensic audit undertaken to verify prices.

Bush is also calling for an expansion of the Petroleum Inspectorate’s powers to enable them to enforce fair pricing and ensure the consumers are not being ripped off.

Speaking to the media Tuesday morning, Bush said he may not be a fan of more regulation and red tape and has said many times there is too much bureaucracy, but this was one area where regulation was woefully inadequate. Falling short of calling for price-fixing, Bush said it would be down to the government of the day to develop a policy that could address what everyone knew to be the inflated prices people are paying at the pumps.

The opposition leader said he did not buy the often cited excuse that the way the bulk fuel suppliers buy the oil on the open market accounts for the lag in price drops, maintaining that everyone knows that people in the Cayman Islands never see the same lag when it comes to price hikes.

He said the motion, supported by his colleague Bernie Bush, was aimed at prodding government towards some kind of energy and fuel sector legislation to regulate the industry, as it has such a broad impact on everyone and everything. He said the verification of the prices was very important.

He said that once the government determined the actual costs of these gasoline and fuel imports, they should publish the findings and take action to ensure the people of the Cayman Islands are being charged realistic prices.

“I have been inundated with calls from people in Little Cayman, Cayman Brac and Grand Cayman seeking answers as to why we are consistently subjected to gasoline and fuel prices that do not conform to prices … on the open commodity market.”

As he spoke, prices at the pumps in the United States, where most of Cayman’s oil comes from, were down to just over US$2 per gallon, while here in Cayman few stations are selling self-service fuel for less than CI$4.75 per gallon, which is a considerable difference.

Bush said that, given the country’s massive dependence on imported oil, not just for transport but for virtually all of the islands’ power needs, the price of fuel was a national security issue as well as a national interest. He said he wanted to work with government on this to address the problem and create more transparency.

“The inspectorate needs more powers to deal with the situation,” he said, as he pointed to other territories where they are controlling the industry and ensuring price drops are passed on.

He said he was not suggesting that there should not be a mark-up but he believed that the profit margins were far greater than what was acceptable. Bush said he feared that the oil companies were using this jurisdiction as a place to make up lost profits in other places because the Cayman government has historically left the oil suppliers to their own devices and believed what they were saying about the delay in prices falling at pump compared to the world prices.

“What we know is people are paying too much,” he said, adding that he believed that while there was some mark-up at the gas stations, the problem was primarily with the bulk suppliers. “We don’t need a rocket scientist or a study to know we are paying too much and I am not saying what government must do but we must do something,” the opposition leader added.

“We can talk up a storm” on this subject, Bush said. “But talk is cheap the public is under pressure and it is time to find what is the true cost and what can be a reasonable profit margin.” He added, “It is wholly unacceptable what has gone on over years.”

Press release and motion: Opposition Leader calls for Transparency in Fuel_Gasoline Prices 14 Jan 2015

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Comments (9)

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  1. waxinglyrical says:

    I am smart enough to know that “whom says” is just simply wrong. We do know and expect to pay higher prices but please do not paint Rubis and Esso as innocent parties. After all look at who owns them.

  2. kiss kiss says:

    let me put my cents in…if I may.

    1) Fuel price should be regulated simple as that!

    2) This EY report saying we should divest everything to the private sector,,umm joke at least until we get some regulation that actually works…aka not like the pension regulator

    3) let us not forget about the shipping lines who should have cut the cost a long time ago. For everyone’s information they raise the rates always citing fuel cost and as they fuel up in Miami, Tampa before departing long ago did their fuel prices come down.

    4) This island is due for general consumer protection and we need an Attorney General like how they have in the US State of New York. That AG is actually a boss who protects consumers and will sue the hell out of any private company ripping off consumers.

    5) If Cayman implemented a post similar to that of the Attorney General of New York the budget deficit would be cut long ago and these so called “big boys” would have to pay up for the oligarch and monopoly they have conducted for years on years.

    6) We should demand that this consumer protection person (AG New YorK) be headed by
    an independent elected person and that they have retrospective powers of fining and that any company not cooperating would be subject to 20 years in prison. All you would here is settlement, settlement, settlements and the coffers would overrun and a general disbursement should occur with each resident and citizen being entitled to a share of those settlements. Time to stop the madness

  3. Anonymous says:

    This is one of the main things that is causing the people to be hurting. I don’t care who raises and does something about the issue as long as someone does raise it and it is not the PPM and their gas station owner supporters so please Mr. Bush keep up the pressure!

  4. ThIs WrItInG Is VeRy IrRiTaTiN says:

    Let me get this straight. All in one day McKeeva threatened to sue the auditor general because he doesn’t like the conclusions in the report about unsubstantiated travel and entertainment expenses (that he was largely responsible for) and then he demands more transparency from private companies who supply fuel to the island? His comments on the fuel situation would be far more meaningful without the threatened litigation. He needs to understand that he can’t have it both ways. If he is not willing to be transparent as an elected official then he has no right to ask for transparency from private companies.

    I hope the voters come to their senses before the 2017 elections and elect sensible people who enter politics for the betterment of the islands and not to enrich themselves. This cycle of replacing one group of incompetent self-serving politicians for another group of incompetent self-serving politicians needs to stop. Just because the opposition points out glaring errors made by the incumbent every once in a while does not mean they are capable of doing a better job the next time around

  5. Plankton says:

    Read the fuel inspectorate quality report of Nov 2013 and look at the images. We pay $5/gal to pump salt water, rust, and additional corrosive contaminants into our vehicles. Sold by our unscrupulous dealers that never drained or refurbished their tanks after Ivan and really couldn’t care less because the inspectorate will not routinely sample or reveal offending stations to consumers. Would you believe it’s not this public entity’s job to advocate for consumers, even if the public is commissioning them and their quality assessment reports?!? You can’t make this stuff up.

  6. gt voter says:

    They really need to be delt with Alden the price of gas & everything else must be delt with! It’s getting out of hand with groceries,gas etc

  7. Caribsailor says:

    The campaigning has begun!

  8. just saying.. says:

    Thank God almighty!..some body has listened and acted…that’s why I always maintained that in Mr. MacKeeva Bush you will always find a warrior on behalf of the people.

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