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Aklavik residents feel pain at the pump
Gas prices in the hamlet rise 35 per cent in a month after new distributor takes over; NTPC finds its fuel elsewhere

John McFadden
Northern News Services
Saturday, October 17, 2015

AKLAVIK
Calling it an "urgent concern", Mackenzie Delta MLA Frederick Blake demanded answers from Public Works Minister Tom Beaulieu about the price of gasoline and heating fuel in Aklavik during the final sitting of the 17th legislative assembly late last month.

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Beaufort Delta Petroleum is selling gas in the hamlet for $1.90 a litre as the pump indicated on Oct. 15. More than a hundred residents of the community have signed a petition calling for a different company to step forward and sell fuel at a cheaper price. - photo courtesy of Fred Behrens


How communities get their fuel

Resupplied by all-weather road:

  • Jean Marie River
  • Tsiigehtchic
  • Wrigley

Resupplied by winter road:

  • Trout Lake
  • Nahanni Butte
  • Gameti
  • Wekweeti
  • Whati
  • Colville Lake
  • Deline

Resupplied by summer barge:

  • Lutsel K'e
  • Fort Good Hope
  • Tulita
  • Ulukhaktok
  • Paulatuk
  • Sach's Harbour
Source: Department of Public Works and Services

A visibly frustrated Blake pointed out gas was $1.90 a litre this fall, up from $1.60 in August - an increase of 35 per cent. He also tabled a petition in the house, signed by 105 Aklavik residents, about one-sixth of the hamlet's population, calling for another company to come in and sell fuel at a cheaper price.

"The people of Aklavik had no warning that this was going to happen. When (Inuvik-based) Beaufort-Delta Petroleum took over fuel delivery, the company did not meet with the hamlet council," Blake told the house. "They didn't let their clients know of a rate change in advance and rates weren't increased gradually. The change was sudden and substantial."

Blake said the petition was signed by the hamlet's homeowners, hunters and trappers, community government representatives, recreational vehicle users and many other residents.

"In the petition . they support a call for proposals for new distributors for fuel and gas products in Aklavik. The hamlet will be looking for companies that can provide fuel to the community at a more reasonable rate," Blake said.

Beaufort Delta Petroleum took over Aklavik's fuel delivery system from Arctic Dove in August of this year.

Beaulieu said that the main reason the territorial government can not immediately take action on the price of fuel in Aklavik is because the hamlet is considered a "market" community. The Department of Public Works' fuels services division is responsible for supplying fuel to communities considered to be "non-market" - essentially communities with no private fuel retailer.

"In Aklavik, the fuel and the gasoline have been distributed by a private company up until this year and the private company is continuing with a change of ownership again this year," Beaulieu told the legislative assembly. "However we are having discussions with them as a result of the concerns from the community and the petition."

The senior administrative officer (SAO) for Aklavik, Fred Behrens, said that the situation is particularly galling because he understands that the Northwest Territories Power Corporation (NTPC) bought the fuel it uses to power electricity in the community at a cheaper price from a distributor in the southern part of the NWT.

"NTPC could not come to an agreement for diesel for their power plant here so they ended up bringing their own tanks and fuel in," Behrens said. "It doesn't leave a good taste in our mouths. Aklavik has always had a private distributor for fuel oils in the community. We haven't been part of the government system so we are trying to find a solution on our own."

The price jump in Aklavik comes at a time when crude oil is selling at its lowest price in years.

Behrens, who signed the petition, said he thinks Aklavik is not unique in the NWT when it comes to high fuel prices.

"I know the same arguments happen in Yellowknife and all across the North when the price all of a sudden jump up unrealistically. Over the years I've seen it happen many times," he said. Officials from Beaufort Delta Petroleum had not responded to an interview request as of press time.

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