Carbon tax on fuel goes up across Nunavut

Price of gasoline will rise to $1.09 per litre on Thursday

Nunavummiut will see diesel and gas prices increase by about two cents per litre on Thursday, with the federal carbon tax going up. (Photo by Mélanie Ritchot)

By Mélanie Ritchot

Diesel and gasoline prices will go up across Nunavut on Thursday, as the federal carbon tax increases across Canada.

Prices will rise by about two cents per litre, bringing the price of gasoline to $1.09 per litre, vehicle diesel to $1.19 per litre and heating diesel to $1.05 per litre, including taxes, according to a news release from the Department of Community and Government Services.

These prices are the same across Nunavut except in Iqaluit, where gas and diesel prices are set by individual vendors.

The price change is a result of the carbon tax increase on fuel products sold in the territory, taking into account the Nunavut Carbon Rebate, which offsets half the carbon tax for Nunavummiut.

Aviation fuel and diesel used to generate electricity are exempt from the carbon tax, the news release said.

In early March, a bill was passed in the legislative assembly to give the petroleum products division, or PPD, permission to run bigger deficits and surpluses to help stabilize gas pricesin Nunavut. But Wednesday’s announcement is different from the PPD’s regular price adjustments, since the change is based on the federal carbon tax.

The PPD controls the prices of gasoline and heating based on factors including how much it paid for bulk fuel shipments, how much it bought and how much people use throughout the year.

When asked whether Nunavummiut should expect another price adjustment soon, which regularly happens in the new year, Mustafa Eric, a spokesperson for Community and Government Services, said in an email, “if and when a price adjustment is made, it will be announced in due course.”

Last year, fuel and diesel prices dropped by four cents per litre.

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(7) Comments:

  1. Posted by Bushman on

    How does Nunavut of all places have the cheapest fuel in Canada haha

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    • Posted by Truestory on

      Watch the Northern store increase food prices. The feds just gave them the perfect excuse to increase the food prices. Probably will mark up to 150%.

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      • Posted by With what money? on

        Aren’t they always claiming to be in deficit? Relying on equality payments? Govt of Nunavut didn’t pay for that.

  2. Posted by Coffee drinker on

    Coffee as of today has gone up 26.09 % all basic necessities should be getting higher subsidies.

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    • Posted by Coffee is a luxury. on

      A necessity is something you can’t do without. You can do without Coffee.

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      • Posted by Why all the downvotes? on

        I wonder why they’re downvoting you? You’re right. It’s a luxury. It is also the most exported drug in the world. Known fact! It isn’t necessary to have coffee. Water, yes.. coffee, no.

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