Debates of November 26, 2021 (day 85)
Oral question 812-19(2): Cost of fuel in nunakput region
Mr. Speaker, the high cost of gasoline and diesel fuel in our communities really affecting our people. I really would like to see if our government would be committing to cap fuel prices and increases in our communities because we used to get it at Edmonton rack price so you'd be a year out and it wouldn't really affect. But now that I think they're buying their fuel somewhere else and being shipped around over the top, it might be costing a bit more, I don't know. But is it available or are they willing to work to cap the prices for the coastal communities of Sachs Harbour, Ulukhaktok, and Paulatuk. Thank you, Mr. Speaker.
Thank you, Member for Nunakput. Minister responsible for Infrastructure.
Thank you, Mr. Speaker. Mr. Speaker, indeed the cost of petroleum products has risen greatly across the country and in the Northwest Territories and remote communities are very much affected. Gasoline prices have gone up across Canada on average of 41 cents per liter over the past year. Diesel fuel prices have risen more than 42 cents per liter. And furnace oil prices for consumers have gone up more than 44 cents per liter. Canadians across this country are paying as much as 50 percent more compared to last year.
The department manages the cost of operations to try and limit the rise of prices for consumer but when the cost of fuel products we buy rises, the price of consumer goes up. Unfortunately Northwest Territories is not protected from the impact of national and global fuel price increases. Thank you, Mr. Speaker.
Ulukhaktok's gas price is $1.94. Sachs Harbour $1.95. Paulatuk, $1.93 or $1.34. Mr. Speaker, this is 50 cents more than anywhere across, like you go in Yellowknife it's 50 cents more back home. People got to live, trying to survive. I mean, not everybody has government jobs back home. We need to try to protect our constituents, Mr. Speaker, in regards to that. MTS I don't think is a makeprofit company because it's owned by the GNWT which I think all that contract that they did get for north warning system, they should be sharing the wealth of it. So in regards to that, I think that something like this, this small for three communities for subsidy, our flyin/flyout community, they should be subsidized a bit and it should be looked at. Is the Minister willing to do, Mr. Speaker. Thank you.
Thank you, Mr. Speaker. The department cannot subsidize fuel prices sold to consumers through this program. The subsidization is not permitted under the rules of the program. The entire program runs on a costrecovery basis. Each liter of fuel that is sold includes the cost to purchase the fuel from wholesalers, the cost to transport the fuel to the communities, and the cost of commission to two local contractors who sell the fuel. The reason for the rise in the price of fuel lately is because it does cost us more to buy the fuel from the suppliers. This is extremely unfortunate but it is it's not something that the department can affect. Thank you, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, with MTS, I mean, with all they're buying bulk fuel. Where are they buying their bulk fuel from. Thank you, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, I don't know. I could get back to the Member on exactly where we're buying the fuel from. Thank you.
Thank you, Minister. Final supplementary. Member for Nunakput.
Thank you, Mr. Speaker. I bet it's pretty cheap fuel they're buying. So in regards to, because they're buying so much. When you buy that much you get a price, you know, decrease in the price because you're buying bulk. Is it possible, like, the Minister just to look into it to find out. I want to have a breakdown of where the cost is affected in the cost that they're giving it to the communities and if it's possible to get that in writing. Thank you, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, I think I thought I heard the Member say, you know, asking the Minister if she can look into that and absolutely, that's something I can do. Thank you, Mr. Speaker.
Thank you Minister. Oral questions. Member for Hay River South.