The Department of Public Works, through the petroleum products division, does not subsidize fuel. In fact, through the Petroleum Products Revolving Fund Act, we are required to recover full operating costs from the retail sale of our fuel products. So there is no subsidy, but there is also no profit added on.

When fuel prices are calculated and determined, it is based on the actual product cost to the GNWT, transportation costs to the GNWT, a slight sales commission that goes to the local provider, O and M expenses, some evaporation loss, and taxes. But under the act we have an obligation to do a full cost recovery, no profit. Thank you, Mr. Speaker.