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GNWT Announces Measures to Offset Fuel Costs for Norman Wells, Reducing Wholesale Prices by Up to $0.86 Per Litre

Press Release

To help alleviate financial pressures on residents and local businesses resulting from the ongoing fuel airlift resupply in Norman Wells, the Government of the Northwest Territories (GNWT) will provide financial support to offset increased transportation costs for gasoline, motive diesel, and diesel home heating fuel.

As a result of this financial support, starting as early as November 16, 2024, residents and local businesses in Norman Wells can expect the wholesale cost of gasoline to be reduced by approximately $0.75/litre, and the wholesale cost of motive diesel and diesel home heating fuel to be reduced by approximately $0.86/litre. The timing of retail price adjustments may vary from supplier to supplier and will depend on existing fuel inventory levels.

This offset provided by the GNWT is designed to reduce wholesale fuel costs in Norman Wells, bringing them closer to the expected prices following the winter road resupply in early 2025. The 2025 winter road resupply, which will provide gasoline, motive diesel, and diesel home heating fuel, is anticipated to meet the community’s fuel needs through early 2026.

Following productive discussions with S.R.P. North Ventures Ltd.,, the community’s fuel delivery agent, and Imperial Oil Ltd., the community’s wholesale fuel franchise, the GNWT determined that applying an offset directly to wholesale transportation costs of gasoline, motive diesel and diesel home heating fuel —rather than using an application-based subsidy program—would be the most efficient and effective way to provide immediate support.

Quotes(s)

“Our government recognizes the significant financial challenges that this crisis has created for the people of Norman Wells, and we are committed to continuing our efforts to provide meaningful relief. By adding this new fuel subsidy to our earlier support measures—such as the $1.8 million in emergency funding and the enhanced Senior Home Heating Subsidy—we hope to make a real difference for the community. We understand the work doesn’t stop here; we are committed to working alongside local leadership, Indigenous governments, the Government of Canada, and private industry to address climate-related challenges and build a more resilient future for the region.”

  • Caroline Wawzonek, Minister of Infrastructure

Quick Facts:

  • Unprecedented Low Water Levels: Record low water levels on the Mackenzie River disrupted the summer 2024 barge resupply, originally scheduled with Marine Transportation Services, and necessitated costly airlift operations. These airlift operations have significantly increased fuel prices for Norman Wells residents and businesses.
  • $1.8 Million Emergency Funding: The GNWT provided $1.8 million to help businesses, Indigenous governments, and community governments in the Sahtu and Beaufort Delta regions offset the increased costs of transporting essential goods.
  • Enhanced Senior Home Heating Subsidy: Subsidy rates for seniors in Norman Wells were increased to help manage higher heating fuel costs throughout the winter season.
  • Income Assistance: The GNWT continues to cover actual heating costs for eligible Income Assistance recipients, ensuring that vulnerable residents receive the support they need to stay warm and safe.
  • $150,000 Donation to the Norman Wells Food Bank: To support food security, the GNWT donated $150,000 to the local food bank, providing essential supplies for families during this challenging period.
  • Winter Road Preparations: The GNWT is actively preparing for the winter road season, which is expected to open in early 2025. This includes ensuring logistical and infrastructure improvements to facilitate efficient fuel and goods resupply to Norman Wells and surrounding communities.
  • Long-Term Infrastructure Commitment: The GNWT remains committed to advancing critical projects, such as the Mackenzie Valley Highway, to improve year-round access, strengthen supply chains, and enhance the region’s resilience to climate-related disruptions.
  • Ongoing Collaboration: The GNWT continues to work with S.R.P. North Ventures Ltd.  Imperial Oil Ltd., Indigenous governments and federal partners to address immediate needs and explore sustainable solutions for the community.

Related Links:

For media requests, please contact:
INF Communications
Department of Infrastructure
Government of the Northwest Territories
INF_Comms@gov.nt.ca

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