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NWT - Although fuel prices continue to fall at the pumps, the price of gas, diesel and heating oil has not changed in most communities throughout the territory, which are reliant on stored supplies bought when prices were higher.

Soaring fuel prices earlier this year caused a significant increase to Northerners' cost of living and were used to justify power rate increases. However, with prices now falling, the government is not looking to stockpile diesel – more than 30 cents cheaper per litre than in August – or automotive fuel in advance of a February and April resupply to winter-road access communities.

Soaring fuel prices earlier this year caused a significant increase to Northerners' cost of living and were used to justify power rate increases. - NNSL file photo

John Vandenberg, director of petroleum products with the GNWT, said the government carries costs to store fuel in Yellowknife, and fuel getting into winter road communities early next year will still be cheaper than it was last year.

Vandenberg said there is a cost to double-handle fuel – transporting and storing it in Yellowknife and then moving it back out once winter roads are open. He also said the government would incur carrying costs to keep the fuel.

"All these things add up," he said. "It's a crystal ball thing. You have to determine whether or not the trend is going to continue to be down or stable."

Supply lags mean prices at the pumps are not necessarily reflected in prices of diesel and heating oil used in communities throughout the North. "You're a hero if the price goes up, you're a bum if the price goes down," said Vandenberg, explaining the government does not take price forecasts into account.

"I'm not Nostradamus," he said, adding in the short-term, oil futures for January and February were cheap.

Fuel prices in communities on the highway grid reflect global fluctuations much more quickly than isolated communities, since gasoline, diesel and oil are resupplied more frequently. Residents in the High Arctic, who are resupplied in July, typically pay the same prices until stockpiles are used up and new fuel is bought from outside the territory.

While the GNWT's petroleum products division is dependent upon winter roads to supply communities, Vandenberg said it would look to increase fuel inventories in communities like Whati, Wekweeti and Gameti when the fuel price is lower than usual.

Vandenberg added tank capacity issues and gasoline's shelf life were factors that would limit how much the government could store in communities.

He said the price of fuel will be less than the price in previous years, translating into lower fuel prices in winter road communities.

"Their prices are going to come down as (the communities) are resupplied because it's cheaper fuel."

The petroleum products division provides and stores fuel for 16 NWT communities. It presently stores reserves of diesel fuel in Yellowknife to run the Jackfish power plant should hydro capabilities shut down. It also provides for the lack of fuel delivery during the Mackenzie River crossing's winter and spring closures.