'Quite the leap': Gas Prices rise in Saskatchewan

According to a gas prices expert, gas prices in Saskatoon and Regina have risen to $1.56 a litre over the past 24 hours.

Dan McTeague, president of Canadians for Affordable Energy, says people in Saskatoon are experiencing a 7 per cent increase in prices over the past 24 hours. In Regina, prices rose from $1.47 to $1.56 per litre.

“It’s quite the leap,” he said.

He says the gas prices benchmark in the Midwest United States is up over 13 cents a litre over the past couple of weeks. Gas prices in Saskatchewan are reflective of those prices, according to McTeague.

“Gas stations here in Saskatchewan having seen wholesale prices of about that number [13 cents] have had to throw in the towel and raise prices rather dramatically,” he said.

McTeague attributes the rise in price to supply and demand.

Stations in the province can only absorb rising costs for so long before passing them on to consumers, he says. Wholesale prices are currently $1.42 per litre, according to McTeague.

“They can't be selling gasoline for a 1.42 and having to replace it for a 1.47. Unless of course, they have a rich uncle or a generous bank,” said McTeague. “The reality is that gas stations have to reflect a bit of retail margin in order to be able to honour credit cards, pay for the electricity to turn on their pumps and of course pay their staff.”

McTeague expects prices to continue to rise but not before wholesalers read the tea leaves from our southern neighbours.

“[Prices won’t rise] before markets shed themselves of this panic every time the US Fed comes out with predictions on interest rates,” said McTeague. “Those increases I have been predicting forestalled.”

One person CTV News spoke with is fine absorbing the current costs.

“Due to supply and demand I’m okay with that, as long as it’s not Carbon Tax and government taxation.”

Unfortunately for them, McTeague says prices could rise another 4 cents on April 1st due to the Carbon Tax.

“The so-called Trudeau weather tax will increase prices 4 cents a litre,” he said.

By the end of April, McTeague predicts prices will be $1.65 per litre.  

According to CAA, the lowest prices in Saskatchewan in the past year was 136.4 while the highest in the last year was 205.3.