Imperial Oil to slash fuel price for Norman Wells, N.W.T., as cost of living soars

Norman Wells, N.W.T., is under a local state of emergency declared by the town as it grapples with high heating fuel prices and rising cost of living. It has asked the territorial government to step in and help.(Julie Plourde/Radio-Canada)

By RCI, CBC News 

Company plans to cut price by $1.69 per litre for heating oil

Imperial Oil says it intends to temporarily slash the price of fuel being flown into Norman Wells, N.W.T., by $1.69 starting Tuesday, as the town grapples with an affordability crisis — but there’s a catch.

In a Facebook post Monday, Imperial Oil said its wholesale fuel price for Norman Wells includes air transportation at a cost of $3.38 per litre. It plans to slash that part of its pricing in half, bringing down the wholesale price of heating oil by $1.69.

The catch is that once the company can truck fuel in again, they’ll still keep charging the air transportation cost until they recoup that money.

“This air transportation cost is expected to remain in place until the air transportation costs have been offset, which will be longer than when diesel shipments are being flown,” the company said Monday.

“Imperial is closely monitoring the amount of fuel required to be airlifted to the Norman Wells area to prevent runouts until the winter road season can replenish supplies.”

The move comes after a debate in the Legislative Assembly last week over financial support for the town, where the price for home heating fuel had reportedly topped $5 per litre. Earlier last week, the town’s council passed a motion to declare a state of emergency, and asked for $6.6 million to cover the cost of getting more heating fuel into the community.

All that is tied to historic low water levels on the Mackenzie River, grounding barges that would usually resupply the community from the river and forcing fuel to be flown in — a costly alternative.

Roughly 750 people live in Norman Wells, which is in the midst of a municipal election Monday to elect a new mayor and council. Last week, Sahtu MLA Danny McNeely said people in Norman Wells are paying about $6,200 to fill a standard residential fuel tank.

The company said it doesn’t include a profit margin in its wholesale price and it doesn’t set prices at the retail level. Though the company supplies all the fuel in Norman Wells, that fuel is distributed by local resellers.

Shortly after the announcement, N.W.T. Finance Minister Caroline Wawzonek and McNeely issued statements.

“While this price reduction provides some relief, further steps are needed to fully address the economic challenges residents are experiencing,” wrote Wawzonek.

McNeely called Imperial Oil’s decision “a positive step.”

“This measure reflects progress, and I look forward to seeing how it benefits the community in the coming months,” he wrote.

More gov’t relief

The announcement by Imperial Oil came the same day the N.W.T. government said it has donated $150,000 to the food bank in Norman Wells as the affordability crisis in the town continues.

In a news release Monday, the territorial government announced its food bank donation as a measure to “alleviate the financial burden” residents are currently carrying.

“This $150,000 donation will help ensure that families in Norman Wells have access to essential food supplies throughout the winter,” the release states.

It added the government will keep monitoring the situation and “explore options to provide further support where possible.”

The situation in Norman Wells has taken centre stage so far during this sitting of the legislature. The food bank donation is the latest support announced by the N.W.T. government.

On Friday, the territory announced it was doubling the home heating subsidy for seniors in Norman Wells from $750 to $1,455 per month.

Earlier in October, the territory unveiled a new funding program that would provide up to $30,000 to businesses and governments in the Sahtu and Beaufort Delta regions affected by the barge cancellations.