Expected gas price hike still shocks drivers

| 01/06/2022 | 58 Comments
Esso on Seven Mile Beach (from social media)

(CNS): The price of a gallon of fuel shot up Tuesday, when the Seven Mile Beach Esso became the first local gas station to break the CI$7 mark, but the rest will soon follow, OfReg has confirmed. With an increase of more than 60 cents, regular gas jumped from around $6:31 at the Esso stations to $6.94, while premium climbed to $7.13. Although the hike was expected, given the soaring gas prices around the world, the increase was still a shock as drivers began expressing their outrage.

Social media posts on Tuesday expressed continued concerns about price gouging, and that Cayman had not seen any decline in fuel prices to reflect a drop from the peak in March when crude oil reached US$130 per barrel on the global market.

CNS contacted the utilities regulator, OfReg, about the hike, and they told us it had been cleared and was a result of the batch of fuel purchased by Sol when prices were high, which the wholesaler imported last month and is now hitting the first of the forecourts.

“We can confirm that the recent increase in prices at Esso (Sol) sites are based on increases in the cost of the most recent batch of fuel imported during mid-May 2022,” said Duke Munroe, OfReg’s Executive Director for Fuels. “The importer passed on an average 95% of the cost of recently acquired fuel to their retailers, and some retailers are reflecting the… increase in the wholesale price. This change is expected to be reflected across all Esso sites over the next few days.”

Munroe explained that Rubis made changes to diesel and gasoline at its stations during mid-May based on the change in the cost of fuel it acquired earlier. He said the OfReg website would be updated today to reflect the new prices.

On Tuesday, the global oil price for Brent crude, the international benchmark, rose to over US$122 per barrel at a time when fuel prices are already at record highs around the world. With the war in Ukraine, additional European bans on Russian oil and increasing demand from China as it eases COVID-19 lockdown measures, prices are likely to get even higher.

The price of fuel affects the cost of everything, and economic experts all agree that high oil prices negatively affect inflation. With pump prices in Cayman breaking the $7 mark already for premium, it’s likely that regular gas will also soon pass $7 per gallon, adding to the overall growth in the cost of living here. Utility bills, grocery shopping and medicines will all be impacted, making life for those on fixed and low incomes evermore challenging.


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Category: Business, Fuel

Comments (58)

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  1. Anonymous says:

    The NRA Plan of 2015-2020 budgeted for cycling lanes on every gazetted road and every new layout design in the Cayman Islands. Yet, there isn’t a single completed road offering a consistent cycling route from A to B. That includes subsequent approved roads and traffic circles that made no provision for this deliverable. Isn’t this a form of theft, PACT? How much money was stolen from NRA budget, and who were the recipients?

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  2. Peter Milburn says:

    Well no surprise that gas has jumped so much this time around and will continue un-abated until peoplesay enough is enough.I bought a small car for this very reason and so far so good.I fill up about every 2 weeks and use my truck for short runs.
    Today was fun rain plus 3 ships in town and the usual Jack asses blinkers flashing using the middle lane to get to head of the line.Could write a book on the stupidity of many local drivers.

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  3. Anonymous says:

    OffReg doesn’t care! Taxpayers are paying for the gas in their massive SUV’s and trucks…

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  4. Anonymous says:

    one just needs to compare the price of gas for the last 5 or 6 times crude oil was $130 a barrel to see the gouging going on. And the proof is in the record profits being reported by these companies.

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  5. Anonymous says:

    $7 per gallon of what, we might ask. Our car is stuttering on whatever gunk they are selling as “gasoline”. Pity we don’t have any credible agency to supervise quality, margins, transparency, and protect consumers at a time like this.

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    • Noname says:

      Most of the oil imported to this island comes from Venezuela, which is extremely poor quality and contains high particle count AND high sulfur, which does not help in terms of combustion, not to mention environmental impact. High grade fuel sold here would be considered low octane everywhere else. There were controls in place to address the issue but they led to some pretty vocal protestations from the gas station owners . I wouldn’t advise buying or importing a high performance car here given those very factors unless you want to cope with changing your fuel filters and engine cleaning twice as often as per the manufacturer’s recommendation.

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      • Anonymous says:

        Gas station owners lodge maybe?

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      • Anonymous says:

        Combustion engines need refined gasoline, not oil, not even light sweet. The Cayman Islands is part of an UK and global allied embargo against Venezuela. If OfReg is allowing SOL or any retail dealer buy refined gas or diesel with provenance from Venezuela via Jamaican, Cuban or other intermediary, those are proceeds of crime, and we would deserve our Blacklisting and headlines. PACT had better make sure that’s not the case before FCO gets wind. The headlines would write themselves.

        • Noname says:

          Welcome to the very interesting and active world of transshipping ! You can actually very much compare the particle count to what you get at the pump in cayman with what PVDSA outputs to its own domestic market. (The refineries there didn’t update their installations since the embargo started)

          We are having such poor quality of delivery it is visible to the naked eye. Bear in mind that Venezuelan oil due to its poor quality standards is sold at a quite a discount , which is certainly not reflected here!

  6. Anonymous says:

    Has CI Govt ever wanted to help ? – 37% duty on scooters/motorcycles over 90cc 🤷🏻‍♀️🛵

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  7. Chris Johnson says:

    The price of gas is a very serious problem for Cayman for several reasons. Whilst those who do not need travel far to work it may be of little consequence but those travelling from Northside or East End to George Town every day it is a huge problem.
    Now let us think about CUC and the water companies that can pass on the increase in gas to the consumer. The consumers are seriously suffering because of the increases in electricity and water. It will get worse as the price of oil increases.
    How can our government help? Well I suggest an immediate reduction of duty on the importation of oil. I r ealize it helps both rich and poor but what choice do we have.

    The government needs to urgently address the increase in cost of living much of which is brought about by the escalation in oil prices. Please EXCO get your head out of the sand now.

    Procrastination is the thief of time.

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  8. Noname says:

    Why am I not surprised? I have been driving electric since 2010 , installed solar and batteries to our home , kept away from CUC’s poorly managed CORE program , dealt with all the red tape CPA could throw in our direction . I certainly remember people looking at me as if I was Marvin the Martian . Interesting times indeed !

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  9. Anonymous says:

    I’m sure it will come down just as quickly once the wholesale price falls. Hahaha just kidding.

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    • Anonymous says:

      Hahaha good one!

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    • Anonymous says:

      Kidding indeed. Current price of crude is high, but $8 a barrel less than it was in March. Yet the price in Cayman has gone up. Hmm. Anyone recall the price going down as dramatically when fuel prices fall. Anyone?

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  10. Anonymous says:

    I can afford $7 gas and high cost of food. Time to feel the pain for all the idiotic bs we’ve been steered directly into for the past 2 years. Embrace the suck morons and if the shoe fits wear it.

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  11. FJB says:

    The guy in the White House literally campaigned for presidency on a war on fossil fuels. Elections have consequences people.

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    • Anonymous says:

      The price is driven by a little thing called a war in Ukraine, numbnuts. You can’t blame Democrats for that one.

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      • Anonymous says:

        Gas prices had already increased significantly under Biden due to his energy policy, and while the war further exacerbated the situation your argument falls flat. It is Biden’s fault but hey I guess no more mean tweets

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        • Anonymous says:

          No it’s not you numpty. Take a look at the dates of the energy policy and come back to us poppet.

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  12. Anonymous says:

    Time for the government to look at ways to reduce import duty on fuel to offset inflation. This will have a trickle down effect reducing commodities such as food. Other governments have reduced taxes to assist with hikes in fuel prices. Why can’t our government do the same ?

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    • Anonymous says:

      Because those savings NEVER get passed on

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    • Anonymous says:

      That won’t help food cost. The cost of shipping food here is related to the ocean freight which has gone up 40percent. Last I check they dont re fuel here.

  13. Anonymous says:

    One way to fix the traffic problem!

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  14. Anonymous says:

    Cayman minimum wage is $6 per hour, Florida is $11 per hour. The cost of living is a lot higher in Cayman.

    I dont get how the government can justify $6 per hour (not even $1,000 per month).

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    • just me. says:

      Your an idiot. If wages go up so do the prices. Even more. High tax (Duty its called here) is the reason for the higher prices in Cayman. Do you see that ever changing? can you ever even imagine CIG willing to live with less? No one does. Suck it up till you can’t then move to the UK where taxes are less and the minimum wage is higher.

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      • Anonymous says:

        *Your an idiot*

        Just think about that opening for a moment. Then you can discount the economics-lite tripe that follows.

    • Anonymous says:

      Guess you should get a minimum wage job in Florida. Why are you here?

  15. Anonymous says:

    Retail stations are hiking prices in real-time, then double tapping us when actual supplier cost hits. Without any consumer transparency or published reporting. One could be forgiven for thinking that Ofreg continues to follow price hike “clearance” guidance and orders from SOL and colluding gas station owners.

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  16. Signothetimes says:

    Gallon? This is the 21st century.

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  17. Anonymous says:

    The rest of the Caribbean would be blocking roads and protesting these rates.

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  18. Anonymous says:

    Yet Rubis is still $6.14 for premium. How is Esso allowed to price gouge? Where is OfReg? Oh right, I keep forgetting no one gives a F around here…

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  19. Anonymous says:

    I feel sorry for those people who have to drive from North Side
    and East End who also have to sit in traffic every morning and Evening

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  20. Anonymous says:

    this level of hyper inflation has the the potential to make cayman unliveable for many…and for many businesses
    and the silence is deafening from cig!
    but no surprise there….been here for 25 years and i have never seen any government address the cost of living or cost of doing business.

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