GST cut won’t mean lower fuel prices

By NUNATSIAQ NEWS

Don’t expect that the GST reduction which took effect on July 1 will mean you’ll save money when heating your home or running a vehicle, the Government of Nunavut cautions.

That’s because the price you pay was set last August and will remain the same until rates are set later this year. However, the GST reduction to 6 per cent from 7 per cent will be taken into account when next year’s fuel prices are set by the GN. The major factor in setting the final price will be the actual cost of fuel purchased for the annual re-supply.

Fuel prices are subsidized by the GN, which last year paid $15 million, or about 10 cents a litre, to help lower fuel costs to consumers.

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