Cabinet has approved drafting instructions to strengthen oversight of the Cayman Islands’ fuel sector and create one authority for compliance and enforcement.
This major reform will consolidate fuel-sector licensing and regulatory authority under the Utility Regulation and Competition Office (URCO).
This will transfer licensing responsibilities from the Department of Commerce and Investment (DCI).
Premier André Ebanks said moving oversight to where it can be most effectively managed will strengthen the government’s ability to regulate the fuel sector.
In a press release on 30 March, he said this will help ensure a “reliable, better regulated” supply for families, businesses, and essential services.
Currently, fuel-sector licensing is administered by DCI as part of its general business licensing function.
Meanwhile, 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.
This will enable clear, enforceable licensing aligned with pricing, safety and environmental standards, alongside stronger market oversight, streamlined regulation and sustainable funding to support long-term consumer benefits.
Sonji Myles, interim chief executive officer of URCO, said he is pleased the government has recognised the importance of the 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.”
Finance minister Rolston Anglin added that the reform is about efficiency, accountability and sustainability.
“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,” he said.
“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.
