Nunavut residents wonder how much fuel will cost in 2016

Nunavut residents are anxiously waiting to hear how much fuel will cost in 2016 in order to budget for the coming year. The territorial government has typically announced the price by this point in the year.

In Nunavut, all fuel is purchased in bulk during the summer shipping months and distributed by the government. In Iqaluit, gas and diesel is distributed by private retailers, who determine the final price. This price has often been announced in the legislature during the fall sitting.

Municipalities are just as in the dark as individuals about the price.

"It kinda causes a concern for our hamlet annual budget. We're not sure if we have to increase our budget for our fuel," said Vincent Ningark, accounts receivable finance officer with the Hamlet of Kugaaruk.

He said the hamlet has its budget done by February of each year.

If the fuel price were to go up, it could affect the hamlet's vehicle operations, Ningark said. That might mean the hamlet would have to reduce hours for water and sewer deliveries.

Hot dogs for dinner... or steak?

Iqaluit taxi drivers are also wondering how much they will have to pay at the pumps.

"The lower the price of gas is, the more they're going to put into their pockets," said Craig Dunphy, owner of Pai-Pa Taxiin Iqaluit.

"So in that respect, yes, that's how they would budget that. Whether it be trying to figure out how to pay their rent or whether they should have steak or hot dogs for supper."

Last week, the Nunavut government said it had "no comment" on the fuel price for 2016.A spokesperson for Community and Government Services said the department is still completing its financial analysis.

World oil prices dropped dramatically in 2015, causing some to wonder if Nunavut would see lower fuel prices too.

During the fall sitting, then Community and Government Services Minister Johnny Mike said fuel was pre-purchased at a cheaper price, saving the government around $30 million.

The fuel price did not increase in 2015 but in 2014 the price of gas jumped20 cents a litre, diesel rose 10 cents a litre and jet fuel went up 2.5 cents a litre. That was the first price raise since2008.