GRAND CAYMAN, CAYMAN ISLANDS: 21 JUNE 2018

To advance efforts in keeping with its regulatory oversight and mandate to monitor and ensure prices at the pump are fair and competitive, OfReg, the multi-sector regulator of the Cayman Islands, is seeking assistance for the development of a regulatory framework in the local motor fuels market.

OfReg has issued a Request for Expression of Interest (EOI) to gauge the interest, capacity and competence of entities wishing to participate in the first stage of the process – a comprehensive market analysis and assessment. The EOI can be found at OfReg.ky here. Persons or entities are invited to indicate their interest by end of day 6 July 2018.

The assessment, which will build upon preliminary work already completed by OfReg, will help to identify and evaluate models on how the sector should be regulated as well as intervention strategies for ensuring that there is efficiency and effective competition in the market.

“When there is true competition in the market, prices are set by the market because consumer purchasing habits will automatically drive prices down. In this case the regulator’s job is primarily around ensuring product and or service quality. In the case of Cayman’s motor fuels market, it is unclear if the market is working efficiently and this process is going to help us determine that,” explained Mr. JP Morgan, CEO of OfReg.

Mr. Duke Munroe, Head of Fuels at OfReg, continued: “Globally, fuel prices have been trending upwards from the ‘trough’ we have been experiencing since mid-2014, and consumers are already seeing higher prices at the pump and other areas. OfReg monitors fuel prices globally, regionally and locally, and while the movements are generally consistent across the board, we have more work to do to validate and streamline local fuel prices.”

Fuel prices, reliability of supply, product quality, and the importance of safety and compliance are the focus of OfReg in the fuels sector. The completion of this exercise by the end of Q4 2018 will provide the essential groundwork for that.

OfReg’s mandate, mission and vision is to promote and facilitate competition and innovation in the four sectors it regulates, which fundamentally reflects the goals and broad policy outcomes of the government.