Thank you, Mr. Speaker. Earlier I spoke about the cost of living in Nunakput, and my questions are for the Minister of Infrastructure. My question is: how does the Minister justify the recent increase of fuel prices in Nunakput, given the mandate priority of reducing the cost of living, reducing poverty, and investing in traditional harvesting and consumption of traditional foods? Thank you, Mr. Speaker.
Masi. Minister of Infrastructure.
Thank you, Mr. Speaker. The simple answer is the cost of the product went up, therefore triggering a rate increase. The cost of fuel is driven by factors outside the control of the Government of the Northwest Territories. The Government of the Northwest Territories does not make the market, nor set the cost of fuel. Fuel prices reflect the cost of supply and delivery of petroleum products. The fuel prices are adjusted periodically to reflect the recovery of full fuel costs, including the product cost, transportation cost, sale commission, operations, maintenance expense, and operation losses and taxes. Thank you, Mr. Speaker.
I appreciate the response. The cost of delivery is high in our region, with the current structure that we have. I'm sure there are other competitors that can deliver fuel at a lower rate. However, we rely on the system that we have right now. Based on the average annual consumption, how much would it cost the government to leave the prices of fuel in Ulukhaktok, Sachs Harbour, and Paulatuk where they were before the latest price increase?
The total cost to the government to leave the fuel prices unchanged in all three communities in the Member's riding would have cost us $607,000. To do this, though, to inform this House, would be outside FMB policy. The Financial Management Board sets the direction and policy, and fuel prices are adjusted accordingly. To exempt certain communities from increases would not be consistent or equitable with how all the other communities are treated and would not be affordable to the Petroleum Resources Revolving Fund or the Government of the Northwest Territories.
I understand that sometimes the cost of delivering goods is out of our control and we must comply. Just to come back, the cost of living is high in the northern part of the territory. I appreciate the Minister's response, because I know they're always looking out for the best interests of our residents. My final question is: will the Minister commit to working with his colleagues and myself to revise the process for setting fuel prices in remote communities to ensure that they reduce the cost of living and do not result in hardship for people?
As I said, the Petroleum Products Revolving Fund Act requires the Department of Infrastructure to recover all operating costs from the sale of our fuel. The proposed changes would be contrary to the petroleum resource program, which is self-funded and would have to be debated and voted on in the Legislative Assembly if we were to do something like that, Mr. Speaker.
Masi. Oral questions. Member for Yellowknife North.
