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Saskatoon drivers paying more at the pumps than Regina

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Saskatoon drivers paying more at the pumps than Regina
WATCH ABOVE: Gas prices have drivers feeling different in Saskatchewan's two largest cities – Jun 19, 2019

The price of gas has been a hit to the wallet for many Saskatoon drivers who have seen cheaper petrol prices in Regina.

According to GasBuddy.com, the average gas price in Saskatoon was around $1.19 per litre, while in Regina it was around $1.12 on Wednesday.

Earlier this week, there was a difference of 15 cents.

READ MORE: Feeling the pinch at the pump? What gas prices to expect across Canada this summer

An analyst with the website said the cost for retailers to buy gasoline in the province is around $1.05 per litre and stations in Saskatoon have set higher retail margins.

“At times we’ve seen (retail margins) go down to three or two cents per litre, which you can’t operate a gasoline station on unless you have another way to offset the loss. At the same time, $1.19 looks like a 12-cent, 13-cent with GST retail margin,” senior petroleum analyst Dan McTeague told Global News.

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He added that he wouldn’t be surprised if the price in Saskatoon dropped slightly in the coming days.

But McTeague said the competition in the city isn’t as stiff as other western Canadian centres.

“Regina, Edmonton, Calgary where it is common to see gasoline being sold at or below cost. Those cities often see what I consider to be significant cutthroat competition, I would say bordering on gas wars,” he said.

GasBuddy is projecting prices in Saskatoon to hover between $1.08 and $1.15 per litre over the summer.

READ MORE: Gas prices in Saskatoon and Regina jump over long weekend

But McTeague added those prices are flexible and could shift depending on the strength of the Canadian dollar and a trade agreement between the U.S. and China.

He also said the fact that there is the Federated Co-operatives Ltd. oil refinery in Regina makes a difference in prices.

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