Nunavut homeowners brace for fuel price hike

The price of diesel went up by 10 cents a litre in Nunavut on Jan. 1.

That has some peoplein the territory worried about their home heating bills.

• Nunavut gas prices go up 20 cents a litre Jan. 1

Like other homeowners in Iqaluit, John Maurice and his wife, Rhoda Ungalaq, use diesel to heat their house. The couple live on a fixed income, but they arent eligible for the territorys Senior Fuel Subsidy.

The thing with retired people who workedfor the government and own their own houses, is they usually make enough money to be fairly comfortable, but they're not at the level that makes them eligible for any kind of subsidies, Maurice says.

The territorial government subsidizes fuel for seniors, but only to households with annual incomes under $100,000.

Maurice says that number is surprising.

I looked at it and I thought, wow, the level that you would earn to be eligible for that fuel oil subsidy for elders, you would have to be so low that you couldn't really afford to even own a house.

Roy Green is the deputy minister with community and government services.

He says fuel rates have to increase to cover the rising cost of fuel.

Nunavummiut have enjoyed stable fuel prices over the last two or three years. In fact we've seen decreases in both diesel and gasoline prices over the past several years, Green says.

The government also offers a Fuel Tax Rebate for harvesters, outfitters, and tour operators.

It's 6.4 cents per litre on gas for eligible activities.