NL

On the eve of N.L.'s new budget, residents look for relief from soaring cost of living

With the cost of furnace oil more than doubling in a year and grocery bills spiking, Newfoundlanders and Labradorians are looking for some help in the upcoming provincial budget.

Newfoundland and Labrador government will announce the budget Thursday

The cost of filling a 900-litre oil tank has gone up by about $1,000 in a year. (CBC)

Michael Olawumi could take his car to the Village Shopping Centre to run errands but keeps it parked at his home and waits to board the city bus instead.

"To save money, I only take my car to school because it's close," said the St. John's man Tuesday.

It's not just the way he gets around that has changed recently due to soaring gas prices. Olawumi said his diet has also been affected by the rising cost of price of groceries. 

He is buying cheaper items — and not necessarily the most nutritious ones.

"If we could get some support from the government … it would be good."

With the Liberal government set to release the 2022 budget Thursday, the provincial NDP say they want to see tangible plans to address the problems being faced by people across the province.

"Those living at the margins have been given no hope that their life is going to improve in the near future," said interim Leader Jim Dinn in a statement. 

In March, the Liberal government announced a cost of living plan with $22 million in new funding for the provincial income supplement, income support, seniors' benefits, electric vehicle rebates and a rebate for transitioning from oil to electric heating.

But critics said the funding, while a good start, isn't enough — and noted many people can't afford to buy a new electrical vehicle or upgrade their home heating systems.

The government announced the funding would be added to the provincial income supplement, income support, seniors' benefits, electric vehicle rebates and a rebate for transitioning from oil to electric heating. (CBC)

The cost of furnace oil has gone up about 75 per cent since the beginning of the year.

To fill a 900-litre tank costs about $1,900 this week. A year ago, the cost was about $900. 

The province's Opposition said Thursday's budget is a chance for the Liberals "to fix their mistakes and to announce a real cost of living plan." 

"A real, effective, cost of living plan must include a home heating rebate program, a reduction of the gasoline tax, deferring the carbon tax increase, and stopping the sugar tax," said finance critic Tony Wakeham. "I would also like to see the budget put money back into people's pockets through the reduction of taxes and fees."

If support doesn't come from the government, people like senior Donalda Pearse of Mount Pearl might have to consider other options, like moving away from Newfoundland and Labrador.

"The prices of everything from food to gas, to clothing, it is outrageous," she said. 

On top of that, Pearse said she and her husband are paying off thousands of dollars' worth of dental bills because they don't have insurance.

"It's really difficult. I just don't know what to do anymore."

Read more from CBC Newfoundland and Labrador

From files with Patrick Butler

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