Thank you, Mr. Speaker. The petroleum products division works on a cost-recovery calculation. We don’t actually make profit on the fuel; we intend to actually cover the total cost. The price is determined by the product cost when we purchase it in the South, transportation costs to get it to whichever the 16 communities we provide fuel in, a sales commission that’s provided to a local vendor who adds that. Those commissions are determined based on an RFP process where they submit their potential costs, some O and M expenses, some taxes and a little bit of evaporation loss. It’s a complete cost recovery, no profit to the Government of the Northwest Territories. Thank you, Mr. Speaker.
Glen Abernethy on Question 95-17(4): Fixed Fuel Rates In Remote Communities
In the Legislative Assembly on February 19th, 2013. See this statement in context.
Question 95-17(4): Fixed Fuel Rates In Remote Communities
Oral Questions
February 18th, 2013
See context to find out what was said next.