Churchill Gas Prices Subsidized
Churchill’s gas prices have been reduced by fifty cents a litre thanks to the federal government accessing the economic stimulus fund once again. With petrol prices nearing the $10/gallon mark, this latest reprieve will keep the cost at about $8/gallon. And we complain about gas prices when they reach $3/gallon or more? Kind of puts things in perspective a little, eh?
With federal findings of a probe of Omnitrax, owner of the Port of Churchill facility and the defunct Hudson Bay Line, due to be released soon, residents are enduring rising prices and increased isolation leading to economic strife.
Last week, Natural Resources Minister Jim Carr confirmed that the Ottawa government would allocate $132,870 for Exchange Petroleum to lower gasoline prices to prior levels before the Hudson Bay Rail Line was devastated by flooding last May. Shipping on the railway was the only way to keep costs for supplies and fuel low. Now, ten months later, the pressure is causing long-time residents to move south in search of a more affordable lifestyle.
In September 2016, Ottawa approved the Churchill and Region Economic Development Fund, intended for the diversification of northern Manitoba’s economy following Omnitrax laying off most of the port’s workforce that summer. Businesses have benefitted from the money by offsetting rising shipping costs of materials shipped by barge or airplane.
Last December Carr visited Churchill and announced the government would add $2.7 million to the existing $4.6 million relief fund. After seemingly turning a blind eye to the issue the federal government now is coming to the rescue.
The new windfall of cash will be transferred to Exchange Petroleum, owner of the Calm Air fuel-storage tanks located at the Churchill airport. These tanks are being used due to issues with the port’s storage tanks related to the viability of winter storage of the fuel.
“This project is a great example of how collaboration and partnerships can help lessen Churchill’s acute economic hardships, restore a quality of life, and keep its entrepreneurs in business,” Exchange CEO Gary Bell wrote in a statement.
Churchill Mayor Mike Spence expressed thanks to Ottawa for its leadership and funding while conveying optimistic thoughts that rail line repairs would commence in the spring.
“This announcement means real savings for residents and businesses of Churchill during these difficult economic times,” Spence wrote. “It’s important to also give a great deal of credit to Exchange Petroleum who stepped in last fall.”