The steady increase in the price of fuel is disastrous for remote communities, Mathias Colomb Cree Nation Chief Shirley Castel says.

In her community of Pukatawagan, located about 700 kilometres northwest of Winnipeg and served by air for most of the year, higher fuel prices means higher freight costs, which affects the price of everything, she said.

It also means much higher prices for the gas itself, Castel told CBC News.

"In Winnipeg right now it's $1.30 for gas prices, compared to ours, we're paying $1.90. But then I hear that the gas prices are going to keep on the rise and I don't know when it's going to stop," she said.

Castel said the unexpected cost increases makes it hard for the First Nation to manage its limited financial resources.

Requests for additional money from the Department of Indian Affairs have so far gone unanswered, Castel said.

A department spokesperson said the issue is under consideration but no decision has been made.

In 2007, the department gave Manitoba First Nations an extra $5 million to cope with additional costs caused by rising fuel prices.