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Gas hike means cash squeeze

Chris Windeyer
Northern News Services

Rankin Inlet (Nov 15/06) - Nunavummiut began paying 10 cents per litre more for gas this month, and Willie Nakoolak said hunters are going to feel the pinch.

"Active hunters they don't make money every day," said Nakoolak, chair of Aiviit Hunters and Trappers in Coral Harbour.
NNSL Photo/graphic

Myles Nipisar waits to have his gas can filled at the M&T gas station in Rankin Inlet this past week. - Darrell Greer/NNSL photo

NNSL Photo/graphic

Qulliq Energy customers will also feel the pinch. The utility has requested an increase in the fuel stabilization rider that helps cover the cost of diesel used to generate power.

If the company's request to the Utility Rates Review Council (URRC) is approved, the fuel stabilization rider will nearly double from 3.98 cents per kilowatt hour to 7.87 cents. That amount already shows up on Qulliq customers' bills, but Energy Minister Ed Picco said customers will get a rebate if the URRC comes back with a lower amount for the rider.



"It's going to be quite hard for them to find money, when money doesn't come easy."

He said he didn't even know the price was going up until the pump price changed.

He thinks the government could have done a better job getting the word out to customers.

Ken Hachey, manager of Arctic Fuels in Baker Lake, said the short notice usually means long lineups the night before a price increase. This time around, when gas jumped to $1.15.5 per litre, it was no different.

"It ends up being a situation where there is a lineup and I had the guys working late, pumping fuel until 10 o'clock, 11 o'clock at night."

The Government of Nunavut bought 169 million litres of fuel to last until next year's spring sealift starts. The total bill for that fuel was $119 million.

Community and Government Services minister Levinia Brown said the government-imposed price hike could have been worse.

She said consumers would have had to pay double that amount if they were directly exposed to the spiralling world price for crude oil.

"We need to recover as much of the cost of the government's fuel purchases as possible," Brown stated in a news release.

"On the other hand, a major price increase will hurt hunters, communities, homeowners, businesses and economic development. I believe the 10-cent solution is a balanced approach."