Drivers in Saskatoon have been hit with unwelcome news as gas prices soared to $1.68 per litre this week. The increase is not limited to Saskatoon; drivers throughout western Canada have experienced similar hikes.
Luka Goubeia, a local motorist, expressed her frustration with the rising costs.
“It feels kinda crazy, the amount of gas we take to get up to the lake wasn’t always so high, and I was like ‘oh my god, that’s half my paycheck,'” said Goubeia
According to industry analyst and former Liberal MP Dan McTeague from Canadians for Affordable Energy, the price surge tracks back to a storm in Chicago that temporarily shut down the Joliet Refinery.
“We’re attached at the hip here in Alberta, Saskatchewan, Manitoba, and even interior BC to what happens in the Midwest. It’s a spot market for gasoline, and based on that, we’ve seen futures go up thirty cents a gallon,” McTeague explained.
While some areas, like Rosthern, still have lower prices around $1.53 per litre, McTeague cautions that these prices are likely temporary and due to varying inventory levels.
“They haven’t gone through the inventory that they filled up with a month ago,” he said. “They’re lucky if they’re able to sell 8,000 or 9,000 litres a day. Many gas stations in Regina, Saskatoon, and other populated regions tend to be 25,000 litres a day.”
Although price hikes are a burden for consumers, they reflect a robust oil and gas sector.
“Steady as she goes, even if we’re at higher prices than we like, that’s much better than prices jumping up. Inflation is steady; inflation moving up and down is not so good,” said Joel Bruneau, a University of Saskatchewan economics professor.
As the Joliet Refinery resumes operations, McTeague expects gas prices to decrease to the $1.50 range in the coming weeks.