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Petroleum Products Division
About Us
The Petroleum Products Division (PPD) is responsible for the import, storage and distribution of Nunavut’s fuel products.
This webpage will provide you with information about PPD, our infrastructure for fuel storage, and how we operate. You will also find a listing of fuel delivery contractors, retail prices, fuel specifications, fuel sources, and information on how to become a credit customer, or report a spill in your community.
History
PPD was formed in 1972 to distribute petroleum products in the Northwest Territories. In 1994, the headquarters of PPD were moved from Yellowknife to Rankin Inlet where the head office remains today. In 1999, the responsibilities of PPD were transferred to the Government of Nunavut.
In 1999, PPD imported 110 million liters of fuel for Nunavummiut. Today, PPD imports approximately 215 million liters of fuel, representing an annual growth rate of approximately 4.5%.
Spec’d for Performance
Extreme cold temperatures call for enhanced petroleum specifications in order to maintain optimum engine performance. As a member of the Canadian General Standards Board (CGSB), Petroleum Products Division (PPD) represents Nunavut’s interests in the development of petroleum standards for the remote Arctic region.
Reid Vapor Pressure (RVP) is what starts your engine in the extreme cold; the higher the value the more likely your engine is to start. In 2013, PPD requested its fuel supplier to increase the RVP of gasoline to the maximum limit allowable under CGSB Specifications.. Increasing this specification provides added protection for for all vehicle owners and especially travellers on the land..
For more information on Nunavut’s fuel specifications, click here.
PPD operates under the Revolving Fund Act. The Act sets up the mechanism to purchase, transport, store, distribute, sell and supply refined petroleum products to the residents of Nunavut communities in a safe, economical, efficient and reliable way.
The Petroleum Products Revolving Fund (PPRF) is a financial mechanism that provides the resources to purchase and distribute the fuel consumed annually in Nunavut communities. The PPRF operates similarly to a commercial line of credit that is used in the private sector to finance accounts receivable and inventory. Through this fund, the PPD’s expenses are offset by revenues from the sale of petroleum products.
The PPRF provides working capital advances to finance inventory, accounts receivable, operating expenses, and applicable taxes. The authorized limit of the PPRF is $200 million, which is the maximum amount by which the assets may exceed the liabilities. PPD is required under the Act to recover the advances from the PPRF through retail sales.
Although the Act requires the PPRF to operate on a “break-even” basis, the volatility of prices on crude oil markets can lead to fluctuations in annual profits and losses. The Petroleum Products Stabilization Fund (PPSF) was established so that fuel prices did not have to be revised each year to accommodate these variances. The limit of the PPSF is +/- $10 million, after which an appropriation from or remittance to the GN is required. The PPSF accumulates the profits and losses of the PPRF and is similar to the retained earnings account recorded in the financial statements of a private sector company.
Communities & Contractor Information
For a complete list of contractors and available fuels in Nunavut, please click here.
The Petroleum Products Division (PPD) purchases Nunavut’s petroleum products under a supply and transportation contract with Av Nunavut Fuels and Woodward’s Oil Limited (Woodward’s). Fuels are typically sourced from refineries on the East Coast of Canada, the United States or in some cases overseas countries such as Finland or Japan.
PPD typically locks-in its prices during the winter months in advance of the upcoming season’s resupply. This is achieved using “Futures Contracts” whereby the supplier, when directed by PPD, enters an agreement with a commodities broker to lock-in prices and take physical delivery at a later date. These agreements serve two functions; to secure winter-grade specification of fuels during normal production cycles and to achieve savings.
Petroleum Product Specifications
| Automotive Diesel | 3.517-2007 | Low Temperature Operability - Cloud Point -43◦C Electrical Conductivity - 100pS/m minimum @4◦C Cetane - must meet the engine ASTM D613 engine test |
|
Diesel |
3.517-2015 | |
| Automotive Gasoline | 3.5-2011 Amendment No. 2 | Grade 3, Class D Antiknock Performance - minimum 92 Vapour Pressure - minimum 95kPa Oxygenates - No alcohols, MTBE or other oxygenates allowed |
| Aviation Fuel | 3.23-2012 Amendment No. 2 |
Type - Jet A-1 Electrical Conductivity - minimum 250pS/m minimum @4◦C |
Fuel in each community is stored in a Tank Farm, with some volumes stored in tanks at airports for Jet fuel. The current tank capacities can be found below. Upgrades to tank farms are planned for many communities over the next 10 years. The upgrade schedule is based on maximum capacity levels and physical tank quality. Reserve tanks are also found in each community to store excess fuel for emergency situations.
Fuel prices in each community are set by the Financial Management Board, and are based on many factors. These factors include actual product cost, transportation costs, operations and maintenance expenses and product subsidies. The retail price is set on an annual basis, often during the annual resupply operations.
The most recent Retail Price List was rolled out in all Nunavut communities on January 10, 2020. This change in retail pricing was due to changes to the world market prices, evaluation of delivery costs in each region and the adoption of a uniform pricing structure. These changes have resulted in a decrease in retail prices for almost all communities and class of petroleum products.
To access the PDF of the most recent Retail Price List, click here
To see the previous Retail Price List, click here
Fuel in each community can be purchased by residential or commercial customers through the local contractors either by cash or on credit with PPD.
Apply for a PPD credit account:
Fill out the Credit Application Form [A14]
Confirm deposit amount required using a personal cheque, money order or credit card authorization form (available at your bank).
Deposit for Residential Account - $300.00
Deposit for Commercial Account - $1000.00
Send Application and deposit to PPD Headquarters
Community & Government Services
Petroleum Products Divisions
Government of Nunavut
P.O. Box 590
Rankin Inlet, Nunavut
X0C 0G0
Fax Number: (867) 645-3554
Approved applicants will be notified and an account will be created for you. Processing of applications can take a number of weeks.
If your credit application is denied, your deposit will be returned to you. Approved credit customers will have their deposit held until an acceptable credit history is established (approximately 3 months of timely payments) or the account is closed by the customer.
Invoices for fuel services must be paid within 30 days of being invoiced.
For any questions or concerns applying for credit with PPD, please contact the Revenue Manager by email or telephone (867) 645-8425. JGreen@gov.nu.ca
PPD is responsible for ensuring the proper response and clean-up of spills related to the storage and delivery of petroleum products throughout the territory. This includes monitoring and managing the spill response of all fuel contractors throughout Nunavut to ensure the safety of Nunavummiut and the environmental protection of territorial lands.
Individual community response plans have been developed and distributed to all communities throughout Nunavut. They provide guidance to contractors and individuals responding to a spill. These plans follow all associated regulations, including Environment Canada, Transport Canada and the Canadian Coast Guard, as well as National Response Plan frameworks.
PPD maintains an inventory of spill response equipment in each community managed by the local fuel contractor. Spill response equipment includes, but is not limited to, absorbent pads, absorbent booms, personal protective gear, and hazardous substance disposal bags.
The Canadian Coast Guard also has spill response equipment available to a majority of communities throughout Nunavut. Communities include Kugluktuk, Cambridge Bay, Gjoa Haven, Resolute, Arctic Bay, Pond Inlet, Clyde River, Qikiqtarjuaq, Pangnirtung, Iqaluit, Kimmirut, Cape Dorset, Coral Harbour, Baker Lake, Chesterfield Inlet, and Rankin Inlet. The equipment is available through the regional PPD office or the RCMP.
In the event of an emergency spill incident, Nunavummiut are encouraged to contact the 24 hour spill line operated by the Government of Northwest Territories:
(Tel) 867-920-8130
(Fax) 867-873-6924
(E-mail) spills@gov.nt.nu
The attached form (NT-NU Spill Report Form 2016.pdf) should be filled out and sent to the spill line. When filling out the form include all details in order to provide sound framework for regulatory agencies to work off of.
In addition to the spill line, the local fuel contractor should be contacted as well as the PPD regional office.
Please note that PPD is not liable for individual homeowner fuel spills or GN departmental spills such as schools, health centers, departmental buildings, etc. However, if you require assistance, PPD will be able to provide guidance.
Contact the Petroleum Products Division:
PPD Headquarters
Director, Petroleum Products Division
Phone: (867) 645- 8411
Comptroller
Phone: (867) 645-8414
Manager, Nunavut Field Operations
Phone: (867) 645-8443
Manager, Technical and Environmental Services
Phone: (867) 645-8444
Manager, Finance
Phone: (867) 645-8416
Manager, Revenue
Phone: (867) 645-8425
Kivalliq Regional Office
Head, Kivalliq Regional Operations
Phone: (867) 645-8430
Emergency: (867) 645-6526
Kitikmeot Regional Office
Head, Kitikmeot Regional Operations
Phone: (867) 983-4135
Emergency: (867) 983-5069
Baffin Regional Office
Head, Baffin Regional Operations
Phone: (867) 899-7308
Emergency: (867) 899-1422