Governments cautioned against the inefficient use of fuel subsidies

Published on June 15, 2026

Regional Economist Marla Dukharan spoke in the Cayman Islands recently about fuel subsidies and the real impacts of the policy initiative.

Governments propose fuel subsidies to lower the cost of consuming fossil fuels. They artificially lower the price paid by consumers or boost profits for energy companies, often costing millions of dollars globally each year for Caribbean states.

Ms. Dukharan believes “fuel subsidies benefit the wealthy and the energy producers disproportionately, versus the poor”.

Globally, about USD7 trillion is spent on fuel subsidies.

Ms. Dukharan is encouraging authorities to “make sure that the local fuel subsidy is well targeted to reach those who genuinely need it the most, and those customers have maximized their energy efficiency (reforms) otherwise we are wasting money”.

See more in this report by Compass Media Cayman

Source Marla Dukharan