New gas supplier raises fuel prices in Aklavik, N.W.T.
Fuel prices went from $1.60 per litre to $1.90 in the last month
People in Aklavik, N.W.T., are feeling the pinch after a new gas supplier came into the community and raised gas prices by 30 cents a litre.
Beaufort Delta Petroleum Limited started supplying the hamlet about a month ago.
"It's a hell of an impact," says Fred Behrens, Aklavik's senior administrative officer.
Behrens says fuel prices went from $1.60 per litre in August, to $1.90 now.
He's worried about how residents are going to deal with the soaring price. "Especially the people that rely on subsistence living," he says.
What's worse, Behrens says, is that the company didn't even warn the community about the increase.
"We have never had anyone from the new company come to us and explain their marketing strategy, their pricing strategy or anything," he says.
In an email, Beaufort Delta Petroleum said it took over Imperial Oil's Aklavik tank farm and Arctic Dove's fuel delivery system at the end of August.
The company says it doesn't know how Imperial Oil kept its prices so low, but it needed to raise prices to cover costs.
In the meantime, the hamlet of Aklavik hopes to raise the level of competition — it's inviting companies to bid on providing cheaper sources of fuel to the community.