By Karin Yeske

Saskatchewan gas prices continue to plunge

Oct 29, 2014 | 1:41 PM

Gas prices are dropping dramatically in Saskatchewan.

Many pumps in Saskatoon Wednesday were sitting around $1.06 per litre and in Regina around $1.08 per litre.

“This is welcome news for all of us who have been driving as prices are now about 10 to 15 cents below what they were just a few weeks ago. I think that these prices are going to remain in the lower range for the foreseeable future,” Dan McTeague, senior petroleum analyst at GasBuddy.com, said.

“For motorists, that’s a substantial difference when you consider average fill-ups might be as much as 80 to 90 litres per week. That represents a weekly savings of $10, $15, even $20 per average consumer.”

Dropping gas prices is a trend across Canada but only recently made its way to Saskatchewan because nearby refineries, which were temporarily closed for maintenance, are back online. Wholesale prices have dropped from $0.82 to $0.70 per litre. The countrywide trend is tied to dipping crude prices, which at one point Monday was under $80 US a barrel.

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“If anything I would be more concerned about where we head on diesel prices because this time of year, there is a greater use of diesel both in terms of the need for off-road, particularly for agriculture, as well as mining and construction,” he said, adding he expects diesel prices to taper off too.

Prices could continue to drop and perhaps fall below $1 per litre.

“In Saskatchewan you would have to go back well before December 2013 to find gas prices that low,” McTeague said.

“Will we go below $1? You are almost there and with the Canadian dollar picking up a little bit of strength that could also mean prices in the next few weeks could get down. We could scratch that level in the not-too-distant future.”

While the sudden price drop is exciting news for motorists, it has caught a lot of retailers who bought inventory a few weeks ago off guard. It’s also worrisome for people invested in the oil industry.

“As prices remain lower on the crude side, it could have unintended consequences for the Canadian economy as a whole,” he said.

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