Cayman Islands extends fuel relief program through December
Key Points(5)
- The Cayman Islands Government has extended its 2026 Fuel Relief Programme through December, maintaining fuel duty waivers and residential electricity assistance as global energy prices remain volatile.
- The three-month extension runs from October 1 through December 31 and includes a 100% waiver of import duties on gasoline, diesel and propane.
- Cabinet has also approved an additional CI$3 million for the Electricity Assistance Programme, which caps residential electricity fuel charges at CI$0.18 per kilowatt-hour for nearly 95% of households across the Cayman Islands.
- At the September 2026 fuel charge rate of CI$0.2255 per kilowatt-hour, the electricity cap and fuel duty waiver together could save a household using 1,200 kilowatt-hours per month about CI$70.44.
- Ebanks said the extension would provide continued support for households while the government works on longer-term measures to reduce the islands’ exposure to international fuel prices.
The Cayman Islands Government has extended its 2026 Fuel Relief Programme through December, maintaining fuel duty waivers and residential electricity assistance as global energy prices remain volatile.
The three-month extension runs from October 1 through December 31 and includes a 100% waiver of import duties on gasoline, diesel and propane.
Cabinet has also approved an additional CI$3 million for the Electricity Assistance Programme, which caps residential electricity fuel charges at CI$0.18 per kilowatt-hour for nearly 95% of households across the Cayman Islands.
At the September 2026 fuel charge rate of CI$0.2255 per kilowatt-hour, the electricity cap and fuel duty waiver together could save a household using 1,200 kilowatt-hours per month about CI$70.44.
Premier André M. Ebanks said the extension would provide continued support for households while the government works on longer-term measures to reduce the islands’ exposure to international fuel prices.
“Cost of living remains a daily concern and struggle for many families, and this extension provides some relief until the end of the year,” Ebanks said.
The government said it cannot control global fuel prices but can reduce their impact on electricity, transportation and household budgets.
Electricity assistance expanded
The residential electricity fuel charge cap will remain at CI$0.18 per kilowatt-hour.
Residential customers using between 101 and 3,500 kilowatt-hours per month qualify for relief on their first 2,000 kilowatt-hours. The assistance is applied automatically through Caribbean Utilities Company (CUC) and Island Energy, so eligible customers do not need to apply.
The expanded threshold was introduced to cover more multigenerational households, larger families and residents who rely on medical equipment at home.
CUC President and CEO Richard Hew said the company welcomed the extension, particularly as fluctuations in global fuel prices continue to affect electricity costs.
Island Energy Director Matthew Bishop also said the programme was providing relief to households that otherwise would have faced higher electricity costs following the recent increase in global oil prices.
Fuel duty waiver
The fuel duty waiver removes 75 cents per imperial gallon from the import duty on gasoline, 85 cents per imperial gallon on diesel sold at service stations and 25 cents per imperial gallon on diesel imported for electricity generation. The waiver also applies to propane.
The government stressed that the waiver does not set or freeze retail fuel prices.
Pump prices will continue to be influenced by international purchase prices, shipping and supply costs, existing inventory and other market factors. As a result, motorists could see prices fall, remain relatively unchanged or increase depending on movements in global fuel markets.
However, the government said pump prices should remain lower than they would have been if the applicable import duties were still being charged.
The Utility Regulation and Competition Office and Customs and Border Control will continue working with the Ministry of Finance and Economic Development to monitor the fuel supply chain and the impact of the waiver on wholesale and retail prices.
Government says relief is temporary
The extension forms part of the first phase of the government’s three-phase energy relief and resilience plan.
The second phase will expand household energy-efficiency assistance through the Cayman Home Energy Efficiency Retrofit programme, including roof insulation and, at a later stage, more efficient air-conditioning units and fans.
The third phase will focus on expanding solar generation and other renewable energy sources to reduce the Cayman Islands’ long-term dependence on imported fuel.
Between June 1 and August 31, the government provided approximately CI$11.35 million in support through the programme. That included CI$3.92 million in electricity rebates paid to CUC and Island Energy and CI$7.43 million in foregone import duties on gasoline, diesel and propane.
The additional CI$3 million approved by Cabinet will increase the 2026 appropriation for the Electricity Assistance Programme.
Under the Public Management and Finance Act, the finance minister will report the exceptional-circumstance transaction to Parliament, with the appropriation change to be included in a Supplementary Appropriation Bill for parliamentary approval.
Finance and Economic Development Minister Rolston Anglin said the extension was intended to provide short-term relief while the government pursues measures to reduce energy consumption and dependence on imported fuel.
“This is targeted, time-limited relief while Government advances the longer-term work needed to reduce energy consumption and dependence on imported fuel,” Anglin said.
