Churchill approved for subsidy after fuel prices rise

With gas prices in Churchill skyrocketing this week, the town has announced a 43 cent per litre fuel support subsidy for all purchases.

The subsidy was approved by the Churchill Region and Economic Development Fund. It is the same total the Federal government approved last year.

Fuel rose to $2.54 per litre from $1.70 this week and the town says this is the highest gas price in North America.

The high costs are because of new fuel brought in by ship this year.

The town says this highlights the urgent need to have a rail line fixed to reduce the cost of living.

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READ MORE: Talks to sell broken rail line to Churchill break down

The rail line has been out of service for more than a year. Last month, the Canadian Transportation Agency ordered Hudson Bay Railway Co., owned by Omnitrax, to begin repairs to the track immediately. Omnitrax has said it is appealing the ruling.

READ MORE: Omnitrax appealing federal ruling to fix rail line

1:31 One year later, Churchill residents still waiting for rail line fix