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New rules in effect to govern fuel sector

| 14/03/2017 | 24 Comments

(CNS): With the publication of the amendments, regulations and official commencement order for the new law dealing with the local fuel sector, the Utility Regulation and Competition Office has said it will soon begin issuing permits. The implementation of the Dangerous Substances Law is intended to not only improve safety and fuel quality but to make the economics surrounding fuel prices more transparent. OfReg, the new umbrella regulator, which has taken over from the fuel inspectorate, is urging everyone in the industry to swot up on the law to ensure they are compliant.

Duke Munroe, the director and chief inspector of the fuels market who has moved to the new utilities authority from the old Petroleum Inspectorate, said the law and regulations had gone through a rigorous review process. But the resulting legislative package is now more robust and comprehensive, and includes fuel quality provisions and the much-anticipated economic regulation of the sector.

“Not many people would be aware of or appreciate the magnitude of the review and amendment process, but nevertheless we are here and we are ready, as the new regulatory agency, to leverage best practices and promote efficiency, consistency and transparency as it relates to the fuels industry here in the Cayman Islands,” he said.

Munroe stated in a release that the priority for OfReg now is to ensure that all premises and vehicles falling under the ambit of the law have the relevant permits in place and he will begin issuing them within the next few weeks.

“We will be engaging the public and our stakeholders through various channels to educate them about the Law and how it impacts them. The first phase of our outreach will focus on safety and compliance within the sector. Then we will move to the issue of regulation of the fuels market over the coming months.”

Among a number of preliminary requirements under the amended law, the Fuel Standards Committee and the Fuel Advisory Committee have been appointed and will begin meeting shortly, Munroe added. He encouraged members of the fuel sector and the public to review the law, its amendments and regulations, and contact OfReg on 946-4282 or [email protected] for more information.

See the law and regulations on the government gazettes website here.

Tags: , ,

Category: Politics, Private Sector Oversight

Comments (24)

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  1. Anonymous says:

    The Fuel Depot and Airport Fuel Inspections undertaken by the former Petroleum Inspectorate were totally different exercises than pump and retail tank inspections. Retailers were not subject to regular inspections and were given the latitude, not only to import their own fuels, but to add any additives, and dilute the product as they wished. The Fuel Report of 2013 highlighted the variability in pump quality while carefully omitting station identifiers. Many stations were found to be serving up sea water, rain water, contaminants, and additives in addition to fuel – some well beyond industry tolerances. FOIs to identify these stations were declined. The shocking Appendix photos in this report – with striking visual discrepancies – have mysteriously vanished from the official government document: http://www.gov.ky/portal/page/portal/mpchome/publications/fuel-investigation-report

    While consumers were obsessed with what was (at the time) $5/gallon gas, they were, sadly, not questioning the composition of those gallons.




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  2. Anonymous says:

    “Dangerous Substances Law” – Any chance that next year OfReg could branch out in to other dangerous substances, like the import of poisons like paraquat, etc.? Since no one else seems to want to grasp that nettle.




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    • Anonymous says:

      DoA sell a variety of dangerous lawn and agricultural chemicals rarely given the respect they warrant. The $8/hr workie can’t be expected to know how noxious these things actually are.




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  3. Anonymous says:

    Is this going to be a regulation that will be enforced no matter what, or will everything stop grinding to halt again if someone starts whining that they are just trying to make a living?




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  4. Anonymous says:

    What will this mean for the sky-high fuel prices in Cayman?




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    • Anonymous says:

      So when gas is under US$2.40 in the states, will we still be paying CI$5 + dollars which equates to apx US$6 + dollars??




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      • Anonymous says:

        This reply is pedantic, for which I am sorry, but since we price in imperial gallons the currency conversion more or less washes out when comparing to US gallons. CI$5/gallon here is roughly US$5/gallon there.




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  5. Anonymous says:

    Using fossil fuels will continue to contribute to the nagative impact it has on the environment. Renewable energy is the way to go.




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    • Anonymous says:

      True, but too many politicians and croanies with expanding fuel interests. Brand new stations approved and going up all over the place.




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  6. Ben Zine says:

    More bureaucracy; paying for all of the staff and committee members will require an increase in fuel duty. Or is Government going to be willing to receive less revenue?




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  7. The Lone Arranger says:

    Sounds like more gobble-de-gook and red tape to me. What are they trying to do……. besides spend more?




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  8. Anonymous says:

    Oh come on, people. Shunting bureaucratic bullshit around is the oldest trick in the book.
    It is called “political procrastination”.

    Kurt Tibbetts promised reforms and he successfully kicked the can down the road for kingdom come.




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  9. Anonymous says:

    Socialism ……. moving along quite strongly what ya think george




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  10. Sharkey says:

    Get ready for expensive modifications for your vehicle, then when we get around to it we might do something about the high gas prices .




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    • CarGuru says:

      From what I have established, there will be legislation on what grade of fuels can be imported, gasoline and diesel. This will stop any possible imports of a lower grade fuels. What this means for vehicle importers, a wider array of vehicle model offering especially in the diesel engine segments.
      Vehicle manufacturers need hard and firm Gazetted data before they will release a model into a market. When regulation is in place, more efficient vehicles needing a higher grade fuel can be imported and supported under warranty.

      To those that have experienced fuel related concerns with vehicles in the past, like hard start, oxygen sensor issues, EGR valves, the list goes on are likely to experience less costly concerns and repairs.

      Bottom line, the consumer knows what grade of fuel is available consistently, you then know what vehicle runs on that grade.




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  11. Anonymous says:

    CNS, the link provided is not working. Also tried going directly to the OfReg website http://www.gov.ky/portal/page/portal/cpihome and this has issues too!
    Hope this is not indicative of how CPI will operate under the OfReg umbrella.




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      • Anonymous says:

        Thanks, this gives the same result when the site is down.

        Just to add the CPI is a far cry from the inspecting and enforcing activities that used to happen before the current chief took office. New policies are great if they are actually enforced and offenders are fined/prosecuted. I wouldn’t hold my breath about this new policy being enforced as depending on who the offenders might be the chief will bend in their favour.




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        • Anonymous says:

          Duke was the man that blocked consumer FOIs into fuel quality report, so sadly, more protection should be expected.




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  12. gt youth says:

    Excellent news




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  13. Anonymous says:

    Great job PPM. Keep up the good work.




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