Debates of June 1, 2022 (day 116)

Date
June
1
2022
Session
19th Assembly, 2nd Session
Day
116
Members Present
Hon. Diane Archie, Hon. Frederick Blake Jr., Mr. Bonnetrouge, Hon. Paulie Chinna, Ms. Cleveland, Hon. C. Cochrane, Mr. Edjericon, Hon. Julie Green, Mr. Johnson, Ms. Martselos, Ms. Nokleby, Mr. O'Reilly, Ms. Semmler, Hon. R.J. Simpson, Mr. Rocky Simpson, Hon. Shane Thompson, Hon. Caroline Wawzonek, Ms. Weyallon-Armstrong.
Topics
Statements

Oral Question 1129-19(2): Increasing Cost of Fuel

Thank you, Mr. Speaker. I'm not sure, I got your message there that you didn't get my comments clear as when I was reading it out so I do apologize for the bad internet services here in the community of N'dilo and my other constituent riding of Lutselk'e.

Mr. Speaker, the fuel service division buys fuel once a year and stores it in the tanks throughout the Northwest Territories. Each summer, the division resupplies its fuel storage. Why are customers being charged more in April and May in the community of Lutselk'e when the prices for the Government of the Northwest Territories has not been increased and is selling fuel bought in 2021? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Member for Tu NedheWiilideh. Minister responsible for Infrastructure.

Thank you, Mr. Speaker. Mr. Speaker, as I mentioned to the Member from Monfwi about the rising prices in fuel here in the Northwest Territories, we do have a Petroleum Products Revolving Fund Act that again requires us to recover some of the costs. The wholesale price of petroleum products has increased dramatically, as have transportation costs to be able to get that fuel to the communities as a result of the price of diesel. So the wholesale pricing, petroleum pricing was volatile during the resupply program, and the GNWT made reasonable efforts not to purchase petroleum products when the prices spiked. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Can the Minister explain why increases for community government customers, social assistance and senior heating subsidy has increased more than for nonprofit customers? Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, I could ask my colleague why his costs have increased but we can get back to the Member. Thank you.

Thank you, Mr. Speaker, and thank you to the Minister. Can the Minister explain why this increase was necessary despite the existence of the fuel service division revolving fund? Thank you.

Thank you, Mr. Speaker. Mr. Speaker, retail fuel prices are adjusted periodically to reflect the recovery of full laden costs of fuel, including the product costs, the transportation costs, commissions from sales, operation and maintenance expenses, evaporation loss, and taxes. Those are the reasons, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Oral questions. Final supplementary, Member for Tu NedheWiilideh.

Thank you, Mr. Speaker, and thank you to the Minister. My next and final question will be what can we do this fiscal year to help reduce the fuel prices for the community of Lutselk'e? We just don't want to have another price increase midway through or three quarters of this next fiscal year. So normally when these fuel prices go to tender, it's all inclusive. But then this year, it increased. So I want to know what we could do for next year so that the community's not caught off guard again for another fuel increase increases of fuel prices. Mahsi.

Thank you, Mr. Speaker. The capital costs and the financing charges are not recovered from the consumers. So I mean that's another reason. And what can we do to, you know whether we increase or, you know, the fuel costs, the adjustments are made by commodity and by community. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Oral questions. Member for Hay River South.