Churchill held a record last week – the town had the highest gas prices in North America on July 19.
According to a community update issued by the Town of Churchill on July 19, prices had increased from around $1.70 per litre to $2.54 per litre – almost a full dollar more per litre than last week and almost double the average gas price in Flin Flon.
Prices in Vancouver, which has the highest price of any major Canadian city, averaged around $1.46 per litre on July 19.
The increase is directly tied to the absence of a functioning rail line to Churchill. Since the rail line to the community was damaged last year, ships have been used to deliver fuel to the town. While discussions continue between current owners Omnitrax and a conglomerate of northern Manitoba companies in order to buy and fix the line, the community remains cut off from ground-level transport.
The Churchill and Region Economic Development Fund (CRED) – an initiative maintained by Community Futures and supported by the federal government – issued a fuel subsidy of 43 cents per litre last year.
The latest fuel shipment to the community was not subject to a similar subsidy. When fuel from a previous shipment ran out, the switch to fuel from the newer, unsubsidized shipment led to the dramatic price surge.
The town update specified that an application for a similar subsidy was successful.
While the fuel subsidy will cut prices down by 43 cents per litre, the remaining 41 cents of the increase has not been explained. The new fuel shipment was stored at the Churchill Marine Tank Farm, which is owned by Omnitrax, the same company that owns the non-functioning rail line.
In an interview with the Winnipeg Free Press, David Daley, president of the Churchill Chamber of Commerce, said Omnitrax continued “to screw everyone in this town and gouge the poor residents of Churchill when we are at our lowest point.”
