Fuel prices to likely jump Canada Day long weekend: expert

With summer heating up, many people will be hitting the road for summertime adventures, which means one thing for sure: filling with fuel.

Dan McTeague, senior petroleum analyst at GasBuddy.com, said the average price for fuel across the country is $1.21 per litre.

In Regina, as of Saturday at noon, gas was sitting at $1.21 per litre. In Saskatoon, as of Saturday at noon, gas was sitting at $1.20 per litre.

McTeague said the price of gas is likely to rise, only because it’s costing most gas stations about $1.15 to replace the fuel.

“Not many businesses are in the position where they can actually give away gasoline for the price of which they’re buying it,” he said.

“But if you show up with a credit card, say (you’re) taking two to three per cent of the total amount, then you’re looking at selling gasoline below cost. When you start to see an accelerated number of people coming to your gas stations to top up, you’re going to probably see a doubling of your volume so you can’t really continue on that line (for) more than a day or so.”

On average, McTeague said most gas stations across the station charge a 10 cent retail margin.

In Regina, there is stiff competition between gas stations and at a $1.21, there’s not a lot of wiggle room for retailers to offer gas prices below that, he added.

McTeague expects gas prices to jump six to 10 cents a litre in the near future.

“If you’re seeing $1.21 and you’re taking to the roads … by all means top up. Keep checking that GasBuddy app to make sure you know what the spreads are from city to city.”

McTeague said $1.21 is probably as good as it’s going to get for the Canada Day long weekend.