Gas prices in Sask. rise to highest level since July 2019

People in Saskatchewan — and across the country as well — are paying more at the pump.

Gas prices in Regina and Saskatoon hovered around $1.16 per litre of regular gas at most stations Friday.

Dan McTeague, the president of Canadians for Affordable Energy, said that’s the highest price since July of 2019.

He said those elevated prices might make it more difficult to fuel up, but they’re also good for our province’s economy.

“The give, obviously, is that nobody wants to pay more, but we (need) to recognize that oil and gas are our No. 1 export. So their value rising does, in fact … lift jobs and economic outlook,” he said.

“(They also) provide a substantial amount of revenue for governments of all levels, right across Canada … Every year, various governments and social programs that we take for granted are heavily dependent on the success of our No. 1 export.”

As for why prices have risen, McTeague said there are a number of reasons.

For one, the winter storm in Texas closed down many refineries. He explained that supply in North America then took a dip. Because of that, even though the oil and gas used in Saskatchewan doesn’t come from Texas, the price is still affected.

“The commodity is priced in U.S. terms and based on the U.S. market …,” he said. “It will affect us whether we make our own oil or gasoline here … When the United States, the largest consumer of oil products anywhere in the world, has a supply problem, it tends to have a rippling effect.”

He points to about five cents worth of an increase to the Texas weather crisis. However, prices were still rising before that.

“The other five to eight cents we saw at the beginning of February from the beginning of January had much to do with the perception of increased demand. Colder weather, of course, brings a greater draw on heating oils,” he said.

While it’s nothing new, the federal carbon tax also plays a role. As of right now, McTeague said people in Saskatchewan would be paying around seven cents less per litre of gas if there wasn’t a carbon tax.