Iqaluit (Aug 21/06) - The government of Nunavut will set the new annual price for fuel at the end of August and every indicator points toward the price of gasoline, diesel and home heating oil going up.

With a price set annually, Nunavummiut were able to avoid an increase during the past year, even though a barrel of oil has jumped to around $75.

Bryan Kovic fills up a tank at Baffin Gas in Iqaluit. The price of gas is expected to increase at the end of August, when the government of Nunavut sets the annual gas price. Kovic said that some people complain about the prices at the pump, but it never gets too bad. - Kent Driscoll/NNSL photo

Gasoline prices here are some of the lowest in the country.

"We use last year's prices (when budgeting), and we expect a push. My guess is it will go to $1.15. I'm starting to budget for that," said Taloyoak SAO Scotty Edgerton.

The current price of gas in Taloyoak is $1.076.

Edgerton is just happy to have any gas. The tanks ran dry in Taloyoak last week, and for three days you couldn't buy gas in the hamlet.

To fill the gap between the gas running out and the arrival of the sealift in late August, the hamlet flew in 49 drums of gas.

A higher price at the pump means other costs to the people in Taloyoak. The water and sewer truck fee will be going from 3.5 cents a litre up to four cents a litre this year, to make up for the extra gas charges.

With water and sewer trucks pumping three million litres a month in Taloyoak, that half cent starts to add up.

The price of air travel in Nunavut is a popular villain at coffee shops across the territory. If the price for aviation fuel also goes up at the end of August, so could airfare.

"We are going to have to have another price increase this year. It will be minimal," said Kenn Borek Air manager Joan Griffin.

Hamlets have to submit their annual budget to the government of Nunavut by March 31 and the price for gas changes at the end of August. A hamlet that guesses the price increase poorly could run into trouble late in the year.

"We guess, that's the best we can do," said Arctic Bay SAO Bill Harding. The hamlet tracks how much gas every vehicle and building uses, and they have a handle on their consumption. The cost is the "X factor."

"You always over-estimate expenses, and if we over-estimate, there may be a few dollars left over. Everybody knows it isn't going down, but our consumption should be the same," said Harding.

The government of Nunavut sets a fixed price for every community in the territory. Harding believes that the government is being fair.

"They calculate the figures on their additional shipping costs. They don't make money on this," said Harding.

"If the price ain't right, we'll send the tanker back," said a laughing Harding.

The price of gas is set by cabinet through the financial management board.

The board is chaired by the minister of finance, and the gas program is administered by the department Community and Government Services (CG&S).

Finance Minister David Simailak, CG&S Minister Levinia Brown, Deputy Minister of Finance Peter Ma and acting Deputy Minister of CG&S David Akoka did not return phone calls by deadline.