Gasoline cost down in Nunavik

Drivers in Nunavik will get a nice surprise when they go to fill up their tanks this week —the price of gasoline is eight cents lower than last week.

Every year Nunavik’s co-operative network, the Fédération des cooperatives du Nouveau-Québec, sets its new gas and fuel prices Sept. 1.

The FCNQ supplies gas to every community in Nunavik except Kuujjuaq.

In Kuujjuaq, where Halutik Fuels and the Northmart operate the town’s gas stations, neither had set new prices by this morning, but they’re expected to drop as well.

Although Kuujjuaq’s gas retailers may set their own prices, the FCNQ purchased all petroleum products for the entire region of Nunavik this past summer.

And the FCNQ managed to pay much less than in 2008, said Jean-Luc Mallette, who is in charge of oil purchases for the FCNQ.

In the 13 communities receiving gas directly from the FCNQ, gas will now cost $1.34 a litre, after a 21 cent a litre subsidy.

This subsidy, administered by the Kativik Regional Government, comes from a three-year $12.1 million deal with Quebec to reduce transportation costs paid by Nunavimmiut.

For 2009, the gasoline subsidy program is expected to total close to $3 million, making it the largest current cost-of-living reduction measure.

Without the subsidy, the price per litre would be $1.55, Mallette said.

“I am pleased with our decision to keep the price of gasoline as low as possible. Since its creation close to two years ago, the subsidy program has played a meaningful role in the lives of Nunavimmiut and it will continue to do so throughout the coming year,” said Maggie Emudluk. KRG chairperson, in a news release.

Last year, due to much higher global prices for oil, both the cost of a litre of gas and the subsidy were higher, and a litre of gas sold at $1.40 after a subsidy of 48 cents.

Airlines in Nunavik can also look forward to a break this year because aviation fuel has dropped from $2.42 to $1.80 a litre.

Diesel motor is also down from $2.04 to $1.58 a litre.

Richard Tessier, the manager of the Northmart, told Nunatsiaq News on Sept. 1 that he was still waiting to see what Halutik fuels planned to charge before changing his price at the pump.

That’s because Northmart and Halutik charge the same price for gas, he said.