Gas prices up in Saskatchewan with more increases expected in coming weeks

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Gas prices up in Saskatchewan with more increases expected in coming weeks
Gas prices increased 13 to 15 cents on Wednesday at some pumps in Regina and Saskatoon, as experts say it may only be the beginning with summer approaching – May 5, 2022

It may be springtime in Saskatchewan, but summer driving season is just around the corner. And that means gas prices are on the move.

Some Regina and Saskatoon gas stations showed a 13 to 15-cent increase on Wednesday. Regular gasoline prices were posted at nearly $1.79 per litre after prices had been around $1.60 to $1.65 for some time.

Dan McTeague, president of Canadians for Affordable Energy and owner of the gas prediction website Gas Wizard, said Wednesday that a rise in gas prices on the U.S. market in Chicago are affecting prices in the Prairies.

He noted how the price of oil and gasoline is moving up due to a number of factors.

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“Gas stations for the longest time just didn’t bother changing their price, and slowly but surely those retail margins had started to whittle away such that if they’re selling for $1.63, it’s costing them $1.66 to buy their fuel,” McTeague explained.

“If they’re selling for $1.63, it won’t be long before the rich uncle or bank comes calling and asking them how they propose to stay in business while losing money. So most had to respond and drive up their retail margins by about $0.13 a litre.”

On top of this, McTeague said with factors such as a weaker Canadian dollar, the carbon tax, tight global supply of oil and petroleum products and a lack of pipelines in Canada, he expects the Prairies and the rest of the country will continue to reach and exceed all-time records by quite a bit.

“I think this is going to be a very significant, painful summer.”

He believes prices in Saskatchewan could push towards $1.85 or even a $1.90 at different points this summer.

“I think the high watermark would be $1.85 and that can be reached well before the May long weekend, which for many people is the proverbial time in their calendar in which summer driving begins,” McTeague added.

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“For now, the new normal is $1.80 for a litre of gasoline across the province and it’s not likely to end, at least in the foreseeable future.”

So on that note, McTeague suggests if you see a gas station offering cheaper gas that you should “fill your boots and your tank” because it’s not likely that prices will lower any time soon.

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