The NWT government says it will “provide financial support” to offset the increased cost of gas and diesel in Norman Wells.
Fuel prices in the Sahtu community have soared. The town’s lone supplier, Imperial Oil, says that’s because the summer barge season was cancelled due to low water and the company is having to fly in fuel.
At one point, prices were above $5 a litre. Even after Imperial said it would bring prices down a little and spread out the extra cost of air freight over time, residents still said they were looking at home heating bills running to tens of thousands of dollars for the winter.
In a Friday announcement, the GNWT said it would provide an unspecified additional sum to bring down the wholesale cost of gasoline by $0.75 a litre and the wholesale cost of diesel – both motive diesel and home heating fuel – by around $0.86 a litre.
The overall cost to the GNWT of doing so was not specified and may not yet be fully known.
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The GNWT said the subsidized fuel rate might appear as soon as Saturday. “The timing of retail price adjustments may vary from supplier to supplier and will depend on existing fuel inventory levels,” the territory added.
According to the territorial government, the new offset will bring prices “closer to the expected prices following the winter road resupply in early 2025.”
The winter road season should see enough fuel come into Norman Wells to last until early 2026, the GNWT said. Prices may remain higher than usual for some time after the winter road closes, since Imperial is now spreading its air freight costs over a longer period.
“Our government recognizes the significant financial challenges that this crisis has created for the people of Norman Wells, and we are committed to continuing our efforts to provide meaningful relief,” infrastructure minister Caroline Wawzonek was quoted as saying.
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“We understand the work doesn’t stop here. We are committed to working alongside local leadership, Indigenous governments, the Government of Canada and private industry to address climate-related challenges and build a more resilient future for the region.”
For weeks, Norman Wells residents have written to government leaders demanding action over fuel prices. Some have said they would have no choice but to leave if prices continue as they are.
Earlier this week, some residents launched a website sponsored by the Northern Territories Federation of Labour – Heat or Eat – that tracked the town’s fuel price and told the stories of affected community members.
On Instagram, the Town of Norman Wells said the GNWT’s intervention had come “as a result of our advocacy.”
“Our advocacy efforts will now focus on retroactive payments and a re-supply plan going forward five years,” the town stated.
