Drivers’ Heaven in Saskatoon

Petroleum advisor calls low gas prices “crazy and unprecedented” Reported by Gerald Bauman – First Posted: Jan 17, 2013 10:53am | Last Updated: Jan 17, 2013 11:25am

It is a driver’s heaven and it all has to with gas prices.

In Saskatoon, the average litre of gas now goes for 96.9 cents but if you look hard enough, you’ll find some places as low as 93.9 cents. The price has gone down steadily since the end of October. “This is crazy and unprecedented for Saskatchewan,” said Roger McKnight, petroleum advisor with En-Pro International Inc.

Normally the difference in the price of gas between Toronto and Saskatoon is two cents, said McKnight. As of Thursday, that difference was 11 cents.  “That doesn’t make any sense to me whatsoever.

When you look at diesel, the spread is normally two cents between the two cities. Lo and behold, today the differential is three (cents),” he said.

McKnight doesn’t think it is a price war across the Prairies. “I don’t know what the oil companies are doing but I would sure grab this stuff while you can. This can’t go on,” he said. He is predicting a price hike pretty soon, but it will be gradual.

Gas prices normally move around mid-February as refineries shut down for planned maintenance, he said. “I’m forecasting a price in March and April of anywhere from $1.11 to $1.15 a litre,” said McKnight, adding oil companies are only profiting by 6.4 cents per litre in Saskatoon. That profit margin is about 17 cents per litre in Toronto.

At one point, Saskatoon drivers were paying as much as $1.45. It’s safe to say most believed we would never get below the $1-mark again.

Check gas prices across Saskatoon here.

Check gas prices across Regina here.