By William Koblensky Varela, Local Journalism Initiative Reporter, Nunavut News
March 18, 2026
The U.S. war with Iran is increasing oil prices globally, and the Government of Nunavut is anticipating significantly higher costs for its annual fuel resupply.
West Texas Intermediate Crude oil futures are up approximately 34 per cent since last month, after Iran closed the Strait of Hormuz on March 4, which usually handles about one-third of the global oil supply.
“Escalating tensions in the Middle East have recently pushed global oil prices significantly higher after a period of relative stability,” Transportation and Infrastructure Minister George Hickes said in the legislative assembly on March 17.
“Movements of this scale can translate into tens of millions of dollars in additional cost pressure for Nunavut’s annual fuel resupply.”
Currently, Nunavummiut are not expected to pay higher gas prices at the pump or on their home heating bills, according to Hickes.
That’s because the GN’s Petroleum Products Stabilization Fund is well positioned to manage major prices moves in oil, the minister said.
“One-third of Nunavut’s projected fuel requirements for the 2026 resupply were secured in December 2025,” Hickes said. “No fuel price changes are anticipated.”
How much the GN will pay for its annual fuel resupply will become evident this fall, he noted.
The GN’s Petroleum Products Stabilization Fund buys contracts on fuel throughout the year and then sells them between July and October to acquire the annual fuel resupply for Nunavut’s communities.
That fund prevents sharp rises in the price of oil from immediately hitting the wallets of Nunavummiut.
“Nunavut’s base retail fuel prices have remained unchanged since January 2024 despite significant movements in global oil markets,” Hickes said.
“This reflects the disciplined application of our cost-recovery model and careful management of the stabilization fund as it continues its recovery while stabilizing prices for Nunavummiut.”
However, the GN will ultimately have to pay higher prices for the 2026 annual fuel resupply.
The stabilization fund is just getting out of a deficit position, costing taxpayers $5.1 million at the end of this fiscal year.
At the end of the 2023 fiscal year, the fund cost taxpayers $24.7 million, and has been reducing its operating deficit since then.
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“Nunavut is in a far stronger position to manage global market volatility than two years ago,” Hickes said.
