Here's why gas prices might drop in Sask. this week

Canadians for Affordable Energy (CAF) President Dan McTeague believes gas prices might see a slight decline to start the month of June.

“Oil prices are dropping,” he told CTV News Monday. “The pressure on gas stations to drop fuel will happen Wednesday.”

At the start of May, gas was about 60c/L on the market.

The price dropped down to just 51c/L after the OPEC+ alliance extended crude oil output cuts through to 2025.

McTeague says gas stations in Regina are earning 20c/L while Saskatoon stations are seeing 17c/L on their fuel.

“The norm is 10 [cents per litre],” he added. “I would suspect we’re in for a pretty significant windfall and it is likely to be accelerated.”

Price Breakdown

According to McTeague, who is also the founder of GasWizard.ca, wholesale prices for fuel has dropped about 3.5c/L.

Even with a provincial fuel tax and carbon pricing, CAF says Saskatchewan gas stations are paying about $1.33/L of regular gasoline.

Prices in Regina Monday were as high as $1.56.9/L.

“It’s time for gas stations to give back some of that money to customers,” McTeague said.

Provincial Fuel Tax

While the markets could provide some relief at the pumps this summer, the Canadian Taxpayers’ Federation (CTF) joined provincial calls for the government to axe its fuel tax.

According to a CTF poll, 74 per cent of Saskatchewan residents who participated agreed the Sask. Party should give drivers a break on the 15c/L tax for at least a few months.

Gas prices Sask.

“Other provinces have cut these gas taxes,” Prairie Director Gage Haubrich told CTV News. “They started out as very temporary measures but governments are seeing how much people are saving and keep extending [them].”

Manitoba suspended their provincial gas tax at the start of 2024.

According to Gas Wizard, fuel in Winnipeg is about 17c/L cheaper than in Regina.

“We think [Premier Scott Moe] will see if he does cut the [gas] tax for a temporary, all the savings people are seeing will push him forward that it needs to continue to be cut.”

Sask. gas prices

The Sask. NDP first brought forward a motion to suspend the gas tax to the legislature in March 2022.

Regular fuel prices at the time were about $1.70/L and reached as high as $2.06/L in June of that year.

McTeague believes it will be a long time before we see those prices again.

“Gas prices in Saskatchewan have been sticky,” he said. “I don’t see a scenario where gas prices are going to be heading back to $1.75 [per litre], much less $2.00”

The Government of Saskatchewan reiterated Monday it has no plans to suspend the gas tax.

“Saskatchewan remains the most affordable jurisdiction in Canada when you include taxes, utilities, and housing,” the province said in an emailed statement. “The NDP have continually called for a pause of the fuel tax without a plan to maintain highways.”

Haubrich believes less spending elsewhere could help the Ministry of Highways fund road maintenance.

“[The government] is using [the gas tax] as a scape goat,” he claimed. “The problem is they’re in a deficit right now, they’re spending more money than they’re taking in.”

“They said, ‘we are going to balance the budget this year.’ That’s not happening,” Haubrich added.

The province added they have looked to other affordability measures, such as the removal of the federal carbon tax on electric home heating to increase savings for residents.