Home heating fuel prices drop in Nunavut
GN announces new prices as a result of federal pause on carbon tax for home heating
A pause in the federal carbon tax on home heating fuel is now in place in Nunavut.
The Government of Nunavut announced last week that a price reduction on the product would come into effect Nov. 12.
The price of home heating fuel is now $1.34 per litre in all communities except Iqaluit, down from $1.47 per litre. The price in Iqaluit is now $1.27, down from $1.40 per litre.
Prime Minister Justin Trudeau announced Oct. 26 the pause would last for three years across the country.
The carbon tax went into effect April 1, 2022. It’s meant to reduce the amount of fossil fuel consumed in Canada.
Northern premiers have long spoken out against the carbon tax, saying it doesn’t take into consideration realities of living in the North.
Nunavut politicians fought in 2018 for an exemption to the carbon tax for home heating fuel in the territory. At the time, then-premier Joe Savikataaq said he was having discussions with federal leaders, but they were not “getting anywhere.”
The GN offered a 50 per cent rebate on carbon tax for all Nunavummiut when the tax first rolled out, but that rebate was replaced with a refundable tax credit starting in July following changes to the federal carbon tax rules. That credit comes to Nunavummiut every three months.
The GN also paid out a one-time, $1,000 fuel rebate on April 3 to Nunavut homeowners.
“The Nunavut Homeowner Fuel Rebate recognizes the increased costs that inflation and new federal carbon tax rates have had on Nunavut homeowners,” said Finance Minister Lorne Kusugak at the time.
“This rebate gives homeowners a bit of relief on the high costs of heating their homes.”
All of Nunavut’s 25 communities generate their power from diesel fuel. The diesel those plants use to generate electricity is exempt from the carbon tax.