The North West Company says prices of goods sold in its stores are likely to increase as the US and Israeli war in Iran triggers rising fuel prices worldwide.
The company owns Northern and NorthMart stores in the Northwest Territories, which can be the only place to buy groceries in smaller communities.
“Rising fuel prices are already pushing up freight and transportation costs across our network,” said Brigitte Burgoyne, a spokesperson for The North West Company.
“Those pressures hit northern and remote communities the hardest, where goods rely on air and long-distance shipping.
“We’re working closely with suppliers and carriers to manage what we can, but some price increases will be unavoidable.”
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At a Fort Simpson village council meeting on Monday evening, village senior administrator Andre Larabie said the company had asked for a meeting to discuss how price increases may affect the village Northern store.
“They provided us with a letter so that the whole community – including the council – are aware of the increase of the fuel and the increase in transportation [costs],” said Larabie.
“We thought that it was very professional to have a meeting and ask the council to be aware that, due to the war, it’s affecting us already.”
Burgoyne said the company has begun contacting community leaders in areas likely to feel the impact first, to share what it is doing to limit the effect of the high fuel prices.
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“For now, we’re holding prices on key household essentials like milk, bread, bananas, eggs and diapers,” said Burgoyne. “We’re monitoring the situation day by day, and any changes will be made carefully as costs move through the supply chain.”
The soaring price of fuel has caused airlines like Air Canada, WestJet, Canadian North and Air Tindi to announce fuel surcharges in recent weeks, as well as the halting of some routes.
On Monday, Ottawa’s temporary suspension of the federal fuel excise tax on gasoline, diesel and aviation fuel came into effect.
The federal government expects it to save customers 10 cents per litre on regular gasoline, four cents on diesel, and for it to reduce operating costs for businesses in the food and agriculture sectors.
