Sask. fuel prices hit 5-year Christmas-time low

WATCH: Fuel prices in Saskatchewan are the lowest they've been for this time of year since 2020.

Fuel prices in Saskatchewan are the lowest they’ve been for this time of year since 2020.

Depending on the location or company, a litre of regular unleaded fuel ranged between 109.9 and 116.9 Friday afternoon in Saskatoon, the lowest price since prices hovered below $110.0 a litre in December 2020.

“Now that we’ve seen markets move away from $70 a barrel oil back to $55, $56 a barrel, that’s one of the big reasons why we’ve seen a price drop at this time of year,” said Dan McTeague, the president of Canadians for Affordable Energy.

McTeague says a combination of things are helping keep prices low for this time of year.

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Refineries are producing optimal levels of oil, companies are switching to more inexpensive winter blends of fuel, the carbon tax is gone, and the dollar is in a strong position compared to the United States dollar.

“I’m not expecting any surge, unless, of course, for some geopolitical matter that takes place,” McTeague said. “But under the circumstances, in my 30 years of doing this, it looks like what you see is what you’re going to get, perhaps with prices dropping a little bit.”

McTeague said providers are buying gas for roughly $1.06 a litre in Regina, with Saskatoon providers paying a cent or two more. McTeague said many of the factors stabilizing prices now should continue until the end of the year.

Diesel is also avoiding a sharp increase in price, which McTeague says is typical at this time of year as transport vehicles are relied upon more in the cold winter months.

“It’s welcome news, but I don’t view it as being a great cure for some of the inflationary challenges that Canadians are still continuing to bear,” said Keith Willoughby, dean of the Edwards School of Business at the University of Saskatchewan.

Willoughby says this is the time of year when fuel prices are at their cheapest. He doesn’t see fuel prices showing signs of a weaker economy or pointing to larger issues, but says savings at the pump are unlikely to make a large difference to the average consumer.

While inflation has eased overall, fuel prices are lower far faster than other necessities like groceries, which has seen a 25 per cent increase over the last five years, on average.

“When I look at what the typical Canadian would spend in terms of their expenses is usually well over $1,000 a month in groceries. I doubt we’re doing $1,000 a month in fuel purchases,” Willoughby said.

One thing to keep an eye on moving forward is how fuel affects the price of other goods for the rest of winter.

“Maybe this could be an extended period of happiness for the consumer. If fuel prices can be stabilized, that may help to slow down some of the increases that we might be likely to see in other commodities — groceries or airline travel trips,” Willoughby said.