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Nunavik gas prices jump as much as 23 cents a litre

“We are vulnerable to what can happen in other parts of the world”

JANE GEORGE

Here today, gone tomorrow. Gas prices in Kuujjuaq were $1.46 per litre last week, but this week the price at the pump is now $1.69 per litre. (PHOTO BY JANE GEORGE)

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That’s because gas prices at the pump have gone up by 15 cents since Sept. 1 in communities served by the Fédération des cooperatives du Nouveau-Québec, and by 23 cents as of Sept. 10 in Kuujjuaq, Quaqtaq, and Kangiqsualujjuaq, the three communities serviced by Halutik Fuels, a subsidiary of Makivik Corp..

In FCNQ communities, the new price is $1.57 a litre, up from $1.42. In Halutik Fuels communities, the new price is a whopping $1.69 a litre, up from $1.46.

The FCNQ’s cost for fuel in Nunavik is somewhat lower than Halutik’s because the impact of higher fuel price increases is shared among a greater number of communities.

In 2004, the price at the pump was much lower for everyone, with a litre of premium fuel at about $1.14.

But the region’s distributors didn’t have much choice in increasing prices this year. That’s because the record world prices of up to $77 for a barrel of oil held during the entire summer, when they buy fuel for the coming year.

“Last year, the high point came during Hurricane Katrina, but this year it maintained the price,” said Jean-Luc Malette, who is in charge of oil purchases for the FCNQ. “The war in Middle East and uncertainty over supplies, all this made the price high during our resupply period.”

In communities served by the FCNQ, diesel now costs $1.69.7 a litre and fuel oil $1.42.7 a litre

Steep prices for fuel are also unavoidable, because as the price of oil rises, all other costs, such as purchases, the cost of supporting an inventory, and maintenance and interest charges, also rise.

“There is no way to avoid increases as we follow the market, and we are vulnerable to what can happen in other parts of the world,” Malette said.

A provincial tax cut of six per cent and another one per cent cut in the federal excise tax did help lower the cost gas last year throughout Nunavik.

But more tax cuts are unlikely this year, so the price of gas won’t fall in the short term.

In the past, Makivik has offered its beneficiaries some help with high gas prices by providing a subsidy for hunters from its heritage fund.

And about $700,000 from Quebec’s transport department has been divided every year between Nunavik’s 14 communities to provide a non-taxable subsidy of “not more than $500” to all residents over 16. This money is handed out in October and November to cover the higher cost of gasoline in the region.

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