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Running on empty

Dez Loreen
Northern News Services
Thursday, January 17, 2008

INUVIK - An oversight in shipping has caused a shortage of fuel in town, and prices are expected to rise as a result.

NNSL Photo/Graphic

Gas bar attendant Amanda Beveridge keeps busy despite the cold weather. Due to a shortage in the fall fuel shipment, petroleum products may need to be driven up on the highway, which would mean higher prices. - Dez Loreen/NNSL photo

"We're at $1.43 now. We used to be at $1.35 before Christmas," said James Firth, operations manager for Mackenzie Valley Construction, which sells fuel at the pumps. He added that prices could rise as much as 20 cents a litre in the coming months.

"If the price goes up, then that means that the customer is paying for the mistake made by someone else," Firth said.

Inuvik received less fuel than usual via barge in the fall.

Sunny Munroe of NTCL said the light shipment was due to a late request by Imperial Oil.

"Imperial came to us late in the season and wanted to ship more than usual, but we didn't have the space," she said.

According to Munroe, the shipping of fuel via barges is done throughout the summer months, starting in July.

"The fuel is brought up in three or four barges," said Munroe.

"When it arrives, it is pumped into the holding containers in Inuvik."

Munroe said that Inuvik will not run dry of fuel, because of the access to the Dempster Highway.

"We're working with Imperial Oil to get more fuel there," said Munroe.

Gordon Wong of Imperial Oil said Inuvik will not run out of heating fuel and other necessary products.

"There will be enough to meet priority needs and emergency services," said Wong.

He added that the terminal in Inuvik has been modified to receive fuel via trucks.

"It's fair to say we've had some difficulty getting the product there," said Wong.

The shortage is affecting local businesses.

"I got a call informing us that we're on an emergency ration for both gasoline and diesel fuel," said Firth.

He received the call in December.

"As of Jan. 1, I have no more diesel fuel from Imperial," he said.

"At the gas bar, I'm allowed 185,000 litres of gas for the months of January, February and March."

Firth said his amount from March to July will be 200,000 litres. Looking back at the last three years of service, he said his business could use up the initial 185,000 litres by February.

"We'd be done and we wouldn't be entitled to any more gas," he said.

He added that the restrictions would be lifted once the first shipments of fuel came in from the barges.

"This puts me in an awkward position," said Firth.

He said since the announcement of the shortage, Imperial Oil has increased the price of fuel to the distributors in town.

He said he is working with firm out of the Yukon to supply him with diesel fuel.

"We'll start hauling our own fuel this week, which means the price at the diesel pumps will go up," he said.

Firth said that tri-axle trucks are being used to haul the diesel, with each load being 45,000 litres.

The plan to haul diesel is also to make sure the community has enough for when the ice roads break up. Last year, Firth reported that 15,000 litres of diesel were being used in a week.

"We want to bring up one truck per week," said Firth.

The company also has government contracts in James Creek and Fort McPherson.

"We also have to supply them with their fuel," he said.

Arctic Esso manager Barb Lennie declined to comment on the situation.