In the Fuel Sector, OfReg has responsibility for both Safety and Compliance at sites and vehicles handling Dangerous Substances (Fuels and Compressed Gases), as well as Economic Regulation and Competition in the sector.
OfReg’ Economic Regulatory and Competition function entails/involves fuel quality, efficient pricing, sustainability and reliability of fuel supply, consumer advocacy and balancing stakeholders interest in the provision of fuel as a key commodity and utility for the Cayman Islands. Facilitating competition by eliminating barriers, monitoring price and trends in the global industry, and also ensuring consumers has key information to inform both their decisions and behaviors are key element of the Office’s role to achieve a stable fuel sector.
The Safety and Compliance function covers broad matters to ensure fuel sector players and participants are operating in a manner which promotes and enhance the safety and well being of the general public. In addition to inspection and permitting of sites and vehicle storing and transporting fuels and compressed gases, the office is integrally involved in the initial review and approval, as part of its statutory consultancy role for all planning applications involving fixed installations designed for fuel product storage and handling. Other key roles include verifying the accuracy of meters used in the industry, setting and reviewing fuel quality standards, and providing technical input for all national initiatives which involves fuel and energy..
Since its inception in 2003, the Fuels Inspectorate (formerly Petroleum Inspectorate) ensures that sound industry codes of practice are adopted to ensure that safety and appropriate environmental management systems are effectively developed and implemented to minimise the risks associated with Dangerous substances.
Our team also play a vital role in ensuring proper emergency planning and coordination. We continue to build capacity to adequately serve the transformational needs of the fuels sector in the Cayman Islands.
As a forward-looking market regulator, OfReg introduces new policies and policy changes periodically to keep abreast with the changing environment in the fuel market. The rationale and considerations in introducing new and revised policies are set out in OfReg's consultation papers.
What we do
OfReg is responsible for implementing fuel quality and assurance standards and establishing an enhanced and innovative fuel matrix framework. The objective is to ensure a predictable and reliable supply of quality fuel at a fair price in line with global fuel price trends while providing a reasonable return to investors and encouraging the supply of renewable fuels.
We conduct monitoring and analyses afforded by the Fuels Market Regulation Act, and other mandators functions such as inspections, calibration, investigations, enforcement and permitting for facilities and vehicles as required under the Dangerous Substances Act.
Our team continued to review and evaluate the introduction of other fuel types such as LNG, CNG and renewable fuels as transitional fuels that will lower the cost of energy while helping to meet the Cayman Islands’ climate change and other environmentally sustainable goals and obligations.
Additionally, we implement national strategies to protect and strengthen the resiliency of Critical National Infrastructure to prevent, mitigate, prepare, respond to and recover from disruptions from current and emerging hazards.
OfReg is also a member of the National Emergency Response and Marine Spill Response teams, which involves critical functions such as investigating reports of accident and spillage relating to fuels.
Policies & Regulations
In response to several concerns raised during a 1994 review of government insurance and risk management programs, a full appraisal was conducted of all petroleum fuels storage handling activities on the Cayman Islands. The technical assessment fundamentally reviewed compliance with recognized and accepted Codes and Standards and the development and implementation of management systems to ensure safe and environmentally responsible operation.
In 2003 "The Dangerous Substances Handling and Storage Act" was enacted, replacing the Petroleum Handling and Storage Act. The 1997 Fire Code, among various other local and international legislation and Codes, guides the department's work. The Act provided the incorporation by reference, essential industry standards to form part of the regulation, including NFPA, API, ASME, ASTM, CGA and UL.
The Dangerous Substances Act was revised in 2015 to include broader industry matters, including weights & measures, fuel quality requirements and provision for certification of persons performing work in the industry.
The work of the Office is guided by the URC Act as the primary legislation, while The Fuel Market Regulation Act and the Dangerous Substances Act guide the work Economic Regulatory & Competition, and Safety and Compliance functions respectively. The Dangerous Substances Regulations which was enacted in 2017, gives effect to the DS Act. A number of supporting administrative policies and directives further direct the work in the sector.