Energy Evolution: September 12, 2005
Fuel-Pricing Pressures Pushing Up Rates In The North
World crude oil prices forced an increase in rates for all fuel products in Nunavut, effective Sept. 1.
Community and Government Services Minister Levinia Brown said the general price increase of 9.6 cents per litre, including the federal goods and services tax, would apply to all fuel products.
“Unfortunately world oil prices have continued to increase over the past year and that has an impact on us,” said Brown.
“In Nunavut, we have made every effort to keep the retail price as low as possible for as long as possible,” the minister said.
Citing increased demand and low fuel inventories across Asia and the United States, Brown said crude oil prices jumped to over $65 (U.S.) per bbl from about $40 this year.
“As a result, the Petroleum Products Division (PPD) of Community and Government Services faces substantial cost increases for the 2005 fuel re-supply,” Brown said.
“Nunavummiut have benefited for a number of months from lower prices than many parts of Canada,” the minister said.
“Now that the purchase of fuels for the 2005 re-supply is well underway, the retail price must go up so that PPD can start recovering the higher costs of this year’s supply,” Brown said.
Despite the increase, the minister indicated gasoline prices in Nunavut remain lower than in many parts of Canada.