Analyst says gas prices likely to fall after weekend jump

Gas prices crept up over the weekend with several stations in Regina and Saskatoon hitting $1.14.9, but a petroleum analyst doesn’t expect them to stay that high.

Dan McTeague with GasBuddy.com suggests drivers hold off on filling up for a day as he expects to see prices drop to below $1.10 per litre.

In an interview Monday with the CJME Morning Show, McTeague explained the wholesale price of gas is fluctuating. He said the wholesale price went up by about six cents per litre last week and gas stations were actually throwing away their retail margins to stay competitive while holding off on increasing the price.

“I saw some places selling gasoline for as little as $1.02 or $1.03 when it was costing them about a dollar to buy the gasoline to begin with. A lot of them threw in the towel just before the weekend and drove prices up to restore those 10 or 12 cent retail margins to $1.14.9,” McTeague commented.

On Friday the wholesale price of gasoline actually dropped by about two cents a litre and it is expected to continue that trend this week. McTeague said he expects this to push the consumer price back down again by late Monday.

B.C. gas prices could hit record level

The price at the pump could be a lot worse, with B.C. drivers paying near-record prices of $1.54.9 per litre to fill up.

“You could imagine how more than just the opposition to the Kinder Morgan pipeline, people are suddenly waking up to the reality that they’re paying the highest prices anywhere in North America,” McTeague commented.

McTeague said he is pointing out to west coast consumers that blocking a pipeline will leave them paying much more in terms of gas prices down the road.