Nunavut government mulls early fuel purchase

The Nunavut government says falling oil prices won't have an effect in the territory now, but it could impact next year's prices if the fuel is bought before the resupply season.

Possibly in the next few months we might be able to capitalize on the lower oil prices for delivery to Nunavut next year and potentially there could be cost savings there, says Ford Widrig with the governments Petroleum Products Division.

Widrig says PPD is monitoring the prices, but buying fuel early could create problems in finding financing and a place to store it.

That division buys fuel for the entire territory once a year usually between the spring and fall then delivers it by ship during the summer sealift season.

The system means customers in Nunavut aren't seeing a drop in fuel prices. The government sets prices each year based on the cost of fuel at purchase.

The lower oil prices could create a small surplus for the Nunavut government because fuel in the territory is heavily subsidized.

That money would go back to the government.