Premier announces $20M in relief for Islanders as fuel prices skyrocket

Prince Edward Island Premier Dennis King has announced a $20 million package to help cushion the impact of increased living costs. 

The measures, announced in the legislature Tuesday, are to help Islanders who are coping with increased fuel prices. Heating oil rose by 33 cents per litre and gas pricesby 29 cents per litre in the past week alone. Gas has now reached an all-time record high price on P.E.I. of  $1.86 to $1.87 a litre. 

Crude prices have climbed as a result of Russia's invasion of Ukraine, and economic sanctions on the oil-rich country are piling up.

"This will provide direct supports to organizations and programs that are already existing to ensure that we support vulnerable Islanders and support those who are most impacted immediately," King said. 

The biggest-ticket item is a one-time payment of up to $150 for low-income Islanders, to be distributed by the Canada Revenue Agency. Individuals earning less than $35,000 would receive the full $150. Those earning between $35,000 and $50,000 will receive $100.

Other spending announced in the $20-million package includes: 

King said the money will be distributed as quickly as possible. Some measures are expected to roll out this week, but officials said it could take longer to co-ordinate emergency payments through the Canada Revenue Agency, which told the province it could not distribute the funds with the next set of payments the agency will issue on April 1.

"It's direct money from the province, that we would use CRA as the distributor ... They have all people's information, their banking information etc.," King said. "I fully expect they will be able to respond quickly on this for us." 

He said the social assistance top-ups should be distributed this week, but admitted the money won't go too far in a province that was already leading the country with its inflation rate before the invasion of Ukraine pushed fuel prices up even further.

"The costs are at a rate where $150 will be nice, it'll be something that'll be able to help you defer to a certain degree, but it certainly doesn't do anything to make you whole," King said. 

The premier also acknowledged part of the reason for the increased cost of living is that governments including his own have added to deficits and debts, and the cost of carrying that forward puts pressure on the economy.

However, King laid most of the blame firmly at the feet of Russian leader Vladimir Putin, who has directed Russian forces to invade neighbouring Ukraine. 

"The needless, heartless aggression of a dictator has turned the world upside down," said King. "There has never been a more important time for us to work together, to stick together and for goodness, fairness and kindness to win out," King said. 

Green Opposition leader Peter Bevan-Baker welcomed the support program and praised its wide range.