Steep hike in gas price is 'frustrating,' 'disheartening,' Churchill mayor says

Omnitrax is being accused of gouging Churchill residents once again after a steep hike in the price of gas.

The price at the pumps rosefrom around $1.70 to $2.54 per litre on Wednesday, saidDave Daley, president of the Churchill Chamber of Commerce.

The company saidmarket rates and thecosts associated with taking fuel to the communityare responsiblefor the price surge,the Town of Churchill said ina news release.

"It's frustrating. It's disheartening," Churchill Mayor Mike Spence said.

Daley blames the price hike onOmnitrax, the company that deliveredthe fuel on a shipand has thus far refused to repair the northern town's only land link to the south, arail line damaged by flooding in May 2017. The cost of repairs has beenestimated at as much as $60 million.

"It's just another example ofOmnitrax'sgames and punishing the north,"Daley said.

'Exorbitant amount of money'

"You have to realize that at $2.54 a litre, just to fill up a five-gallonjerrycan costalmost $60. If you'rea local or a business person, it's an exorbitant amount of money."

A spokesperson for Churchill's petroleum storage facility, which is owned by Omnitrax, said the fuel price reflects the higher cost of transportationand factors outside the company's control.

"Weunderstand that this cost increase is an additional challenge for everyone in Churchill that comes at a difficult time."

It's another antic ofOmnitraxto punish the people of Churchill and to gouge and disrupt our lives-Dave Daley, president of the Churchill Chamber of Commerce

Spence said he expectedthe town's application for a subsidy through thefederal Churchill and Region Economic Development Fundwould be approved.

Sure enough,the town announced via Twitterlate on Thursday afternoon that its fuel support application was successful and a subsidy of 43 cents per litre would be applied.

In February, the federal government provided a$133,000 grant to help with the sky-high gas prices.

Daley said the most recenthike in price is the talk of town.

"They say it's another antic of Omnitrax to punish the people of Churchill and to gouge and disrupt our lives and our livelihood."

Daley runs a tourism business and needs gas to get to town and ferry customers back and forth.

The fuel shipment is being held in new 85,000-litre storage tanks in the community.

The infrastructure was built late last year after the province ruled the previous tanks were not suitable for continued use.

The decision prompted Omnitrax to cancel its shipment last fall. Local airline Calm Air, however, averted a fuel crisis during the winter by using its own storage facility to bunker gasoline for town use.