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Despite reports of gas stations in Alberta dropping to $1 per litre, GasBuddy petroleum analyst Patrick De Haan said it’s unlikely that will happen here in Saskatchewan.
De Haan said at the moment the only gas station in Alberta reporting a price under $1 per litre is a Costco in Calgary, so the broader dip in prices across the province has yet to occur.
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That being said, De Haan explained there is a slight chance gas prices could drop between five and 10 cents per litre in Moose Jaw and across Saskatchewan as winter approaches.
“I do think there may be a little bit more relief here, as demand for gasoline continues to decline as temperatures cool off,” De Haan said.
“We’ve also made the transition back to cheaper winter gasoline, and the price of oil has slipped below $60 a barrel. OPEC increasing oil production, along with concerns over a potential trade war reigniting between the U.S. and China, is also helping to put downward pressure on oil prices.”
However, De Haan said, there is only a small window for prices to fall further.
“It could go a little lower, but I think there’s about another six-week window where prices could drift lower, but that may be it,” he said.
One of the factors that could drive prices down is that most gas stations have now switched over to the cheaper winter blend of gasoline.
“During the summer months, gasoline is more tightly regulated,” De Haan said.
“As temperatures are warmer and there are more travellers on the road, it can lead to issues with emissions. During the winter months, when temperatures and demand are lower, there aren’t as many concerns, and the winter blend of gasoline is a little less stringent and therefore a little less costly.”
As of Thursday afternoon, the average price of gas in Moose Jaw was $1.309 per litre, which is roughly nine cents cheaper than the same time last year.
