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Government to Strengthen Fuel Sector Regulation

30 March 2026 | Press Release | By: Christina Trumbach

Cabinet approves drafting instructions to align licensing and regulation under a single authority and establish a modern, sustainable regulatory framework

The Government has approved drafting instructions to strengthen oversight of the Cayman Islands’ fuel sector, advancing reforms that will enhance public safety, improve consumer protection, and establish a more sustainable regulatory framework.

This major reform will consolidate fuel-sector licensing and regulatory authority under the Utility Regulation and Competition Office (URCO), transferring licensing responsibilities from the Department of Commerce and Investment (DCI) to create a single, accountable regulator with clear authority for oversight, compliance and enforcement.

Premier the Hon. André Ebanks said:

“By placing oversight responsibility where it is most effectively managed, Government will significantly enhance its ability to ensure that our fuel sector delivers what Caymanians depend on – reliable, better regulated, fuel supply for families, businesses, and essential services. This is yet another longstanding, unaddressed matter, that our NCFC Government seeks to transform as part of our vision for a stronger, fairer Cayman for our people.”

Strengthening Oversight and Eliminating Fragmentation

Currently, fuel-sector licensing is administered by DCI as part of its general business licensing function, while URCO is responsible for the full scope of regulatory oversight, including safety inspections, compliance monitoring, and price tracking across more than 400 regulated sites.

This separation has resulted in fragmented authority, operational inefficiencies, and a structural funding gap within URCO’s Fuels Division.

Under the approved framework, licensing and regulation will be consolidated under URCO, allowing for:

• clear and enforceable licensing conditions aligned with pricing rules, safety and environmental standards;
• improved market oversight and competition monitoring;
• a streamlined, single point of contact for fuel-sector operators; and
• a sustainable funding structure to support effective long-term regulation that benefits consumers and the country. Benefits for the Public and Industry

The changes are expected to deliver tangible benefits across the Cayman Islands, including:

• enhanced public safety at fuel storage and service facilities;
• more consistent and transparent fuel pricing oversight;
• reduced administrative burden for operators through a single regulatory interface;
• stronger resilience in fuel supply chains, particularly during emergencies; and
• greater confidence for consumers that the sector is being independently and effectively regulated. Minister for Finance and Economic Development, Hon. Rolston Anglin, said:

“This reform is about efficiency, accountability, and sustainability. At present, we have a situation where licensing and regulation sit in two different places. By bringing these functions together under URCO, we are closing that gap and ensuring that oversight is both coherent and effective. Importantly, this is not about increasing costs or expanding government. It is about aligning responsibility with capability, and adopting a proven, self-sustaining model that supports better outcomes for the public. This reform ensures that oversight of the fuel sector keeps pace with the needs of our country.”

The Government will now proceed with legislative drafting, including amendments to the Trade and Business Licensing Act; the development of new Fuel Market Licensing Regulations; and amendments to the Dangerous Substances Act and Regulations.

Stakeholder engagement will form a key part of the implementation process to ensure a smooth transition for fuel-sector operators, with provisions in place to maintain continuity of existing licences and minimise disruption to operations.

Interim Chief Executive Officer of URCO, Sonji Myles, added:

“I am pleased that Government has recognised the importance of these reforms and moved swiftly to implement them. Consolidating licensing and regulation under URCO will enable clearer standards, stronger compliance oversight, and a more effective regulatory environment. This reform represents a significant step toward modern, integrated regulation of the fuel sector, promoting fair competition, strengthening pricing rules and transparency, and supporting the long-term resilience of the Cayman Islands’ energy infrastructure."

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