Saskatchewan taxpayers out $180M over inaccurate oil price predictions: NDP

The provincial NDP is criticizing the province for their oil productions in the budget that missed their mark by millions.

The Saskatchewan Party is facing criticism for its miscalculation of forecasted oil prices that may cost taxpayers up to $180 million, according to the provincial NDP.

“For every $1 the Sask. Party missed on its oil projection – the province loses $18 million on an annualized basis," NDP MLA Sally Housser told reporters Friday.

Saskatchewan’s oil price forecast for the 2025-26 fiscal year was set at $71 per barrel, based on predictions from TD Bank and Scotiabank.

However, the current price sits at $61 a barrel – leaving some representatives concerned with the $10 gap.

“This government is budgeting on oil at its highest possible rate, which is the worst form of mismanagement,” Housser said. “We need a budget based on reality, not fairy dust.”

• Download the CTV News app to get breaking news alerts sent to your device

Gage Haubrich, Prairie Director for the Canadian Taxpayers Federation, also voiced his concerns about how the miscalculated budget could cost residents.

“Because the government keeps piling on so much debt, especially when it’s doing these wrong projections, that means more and more of every Saskatchewanian’s tax bill isn’t going to be used for services like hospitals, health care, paying for police officers. It’s only going to be used to pay down those debt interest payments.”

Haubrich went on to say how the interest payments will add to the financial strain of the province’s current debt.

“Right now, the government is wasting about $880 million a year on debt interest payments. That’s $880 million that could be used for services instead of being wasted on debt interest,” he explained.

Both Haubrich and Housser say that the government must improve transparency when speaking about the province’s finances.

“When the government fails to do honest projections on things like oil prices, that means they’re being dishonest with taxpayers,” Haubrich added. ”It’s important for taxpayers to know how much they’re going to have to pay and how much the government is really spending.”

Housser claims that “every single man, woman and child” will feel the effects of the projection being higher than reality.

“What do we have to show for it here in the province?” she asked. ”The longest surgical wait times, the highest-class sizes, rampant crime in urban centers - and business in this province feels it when the government is so bad at what they do.”

In a statement to CTV News, the provincial government defended its economic record while also pointing to the constant fluctuation of oil prices.

“Oil prices in the budget are an annualized prediction based on the average of private sector forecasts. The NDP once again criticize the use of such projections while not explaining what alternative projections they would use,” the statement read.

“Full-time employment has hit a record-high with the addition of 16,500 full-time jobs year-over-year. Saskatchewan’s unemployment rate is also the lowest among the provinces at 4.7 per cent - well-below the national average of 7.1 per cent.”

During its new conference on Friday, the NDP also took issue with the province’s claims on job creation – arguing that data from Statistics Canada shows that 2,400 jobs were lost in last month.

“That’s 2,400 households that aren’t getting a paycheck,” Housser added.“ 2,400 households that are worried about buying groceries.”