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Fuel prices are going down in Nunavut this year

The government of Nunavut has reduced the price of fuel across the territory.

In communities outside Iqaluit, all gasoline and diesel products — including automotive diesel fuel — will go down 4 cents per litre.

In Iqaluit, fuel is dropping an extra 5 cents per litre, meaning customers will pay 9 cents less per litre compared to last year. The additional drop is to help bring Iqaluit prices in line with the rest of Nunavut.

These prices are expected to remain in place until either the end of this year or in early 2021.

Travis Burke/CBC
Travis Burke/CBC

Nathaniel Hutchinson, the director of the petroleum products division, says Iqaluit pays more for fuel because unlike the rest of the territory its fuel is distributed by third-party sellers.

Those sellers include the Qikiqtaaluk Corporation, the Northwest Company and Arctic Co-operatives Ltd. The government doesn't control at what price they sell fuel to consumers.

In the communities, the entire fuel fuel supply chain is managed by the government.

Market price cause of drop

Compared to 2018, the government was able to save between 11 and 15 per cent when they purchased the fuel in 2019, due to a drop in the crude oil market.

"We typically evaluate our products costs at the end of a resupply season," Hutchinson said. "We perform our analysis then and determine the impact on the current fiscal year, as well as an outlook on the future year."

Hutchinson said the resupply season wrapped near the end of October. Then, the division runs through its finances and proposes a price that passes savings on to the territory's residents.

The government's Department of Finance has the final say on price.

Nunavut remains one of the lowest cost jurisdictions in Canada for purchasing fuels, the government said in a press release.