Rankin Inlet (July 26/04) - Nunavummiut will be paying more to drive their vehicles and heat their homes this coming week.

The Petroleum Products Division of the Department of Community and Government Services has announced an eight cents per litre price hike on all fuel products.

Listed below is the cost of gasoline per litre in each Nunavut community when the price hike goes in affect on Aug. 1. Baffin: Iglulik - 89.3 Hall Beach - 89.3 Pond Inlet - 92.3 Clyde River - 89.3 Arctic Bay - 92.6 Resolute Bay - 92.3 Grise Fiord - 89.3 Iqaluit - (tanker refill) Kimmirut - 91.3 Cape Dorset - 91.3 Panniqtuuq - 89.3 Qikiqtarjuaq - 91.3 Sanikiluaq - 83.3 Kivalliq: Rankin Inlet - 96.3 Arviat - 96.3 Chesterfield Inlet - 96.3 Baker Lake - 95.3 Coral Harbour - 98 Repulse Bay - 91.3 Whale Cove - 96.3 Kitikmeot: Cambridge Bay - 98 Kugluktuk - 98 Bathurst Inlet - 98 Gjoa Haven - 98 Taloyoak - 98 Kugaaruk - 98 Umingmaktok - 98

The increase will come into effect on Aug. 1.

The division, which provides fuel sales and delivery services to Nunavut's 27 communities, faced substantial added costs this year.

The department cites unrest in Iraq, increasing demand in China and Japan and low inventories in North America as the main reasons behind the increased cost of the 2004 resupply.

Whale Cove Mayor Stanley Adjuk said smaller communities will be hit hardest by the increase.

"We have no money in our budget to handle an increase like this, so we'll have a shortfall in our budget again next spring," said Adjuk.

"We can't cut services, and there's no way to pass on the extra costs, so we'll have to approach the Nunavut government for extra funding help."

The fuel resupply is purchased on a revolving fund that has to be self-liquidating, meaning all costs have to be recovered through the price of the fuel.

Cabinet approved increasing the fund to $110 million, from $90 million in 2003, to cover this year's cost.

World prices were among the highest in history when Nunavut purchased its 2004 resupply, hovering in the vicinity of US$41 per barrel.

Had the Nunavut government used up all its inventory and started charging the new price on Nov. 1, the increase would have been about 13 cents per litre.

It kept the increase at eight cents per litre by blending the cheaper price of the remaining inventory with this year's higher-priced fuel and raising the price before most communities received their resupply.

Hard on homeowners

Adjuk said every little bit helps, but communities would have appreciated more advance notice on the increase they were facing.

"We knew we were going to be facing a price hike, but we weren't given any idea of how high it would be.

"Homeowners are going to be hit hard with this, especially with a power hike coming behind it.

"You're better off living in a housing unit."