Yellowknife (Mar 10/03) - Winter resupply communities in NWT are getting their gas and heating oil now -- and at last year's prices.

Seven communities in the Northwest Territories get gas and heating oil in a short, six-week winter haul season. - photo courtesy RTL Robinson

Soaring fuel supply prices in the South haven't yet affected the seven communities.

The NWT territorial government's petroleum products division (PPD) purchased this winter's supply, about 3 million litres, well before prices began spiking.

But winter and summer resupply communities "sure will" feel the effect down the road if current trends continue, said Mike Aumond, PPD director in Yellowknife.

The bad news is the communities already pay some of highest prices in the country.

While Vancouver groans about 89.5 cents a litre for gas, up from 57 cents in a year, the price in Rae Lakes is $1.12. In Snare Lakes it is $1.24.

Nahanni Butte is a relative bargain at 99 cents a litre, the same price that had people in Yellowknife muttering when it hit that level last week.

The other winter supply communities are Trout Lake, Wha Ti, Colville Lake and Deline.

Heating oil prices in the seven communities range from 87 cents to $1.04 per litre and average 94 cents.

The price for heating oil in Yellowknife last week was 63 cents excluding GST.

Aumond said the PPD buys 12-15 million litres of fuel a year for the 15 communities it services.

That includes gas, diesel, heating oil, and aviation fuel.

"Right now, our purchasing policy is that we pay rack price," said Aumond. "That means the price the fuel companies charge at any given time."

Wholesale gasoline rack prices rose steadily in Canada and the United States in February. Typically, gas prices in North America are lower in winter than summer.

Given the volatile market and high prices, Aumond said buying fuel via "futures" contracts isn't currently an option.

"We buy in the winter for the winter resupply, and in the summer for the barge transport," said Aumond.

The current PPD price list has been in effect since September 2000.

How much longer it remains untouched will be the question of the summer.

"We will see what the rack prices are this summer and look at our own prices then."

The final word on fuel prices comes from the GNWT's financial management board.

"The PPD doesn't make that decision on its own."

In the past, fuel prices have typically been reviewed by the board in September or October, said Aumond.

Communities serviced by barge during the summer are Tulita, Fort Good Hope, Lutsel K'e, Sachs Harbour, Paulatuk and Holman.

Jean Marie River and Tsiigetchic are re-supplied via all-weather road.

Heating oil and gas prices are highest in Colville Lake ($1.16/$1.11 per litre).

Heating oil otherwise averages 90 cents and gas $1.04 per litre. The national average for regular gas last week was 81 cents. The lowest pump price in a major southern city was $67 cents in Calgary.