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The price of gas in Saskatchewan is about to jump.
Gasbuddy.com is predicting a four-to-five cent rise in the per-litre cost by Wednesday, pushing the price of regular fuel close to one dollar.
Analyst Dan McTeague said the increase is due to a shrinking margin for gas stations.
“Retailers have really been beating each other up,” he said. “They’re throwing away their operating margin.”
McTeague said with prices currently sitting around 94 cents per litre of regular, stations are currently only drawing about four cents per litre for their own costs.
He noted this isn’t sustainable and with wholesale prices rising this week retailers will have to bump the costs along to the consumer.
He said the price increases stem from speculators “misinterpreting” U.S. reserves and the inability for tankers to bring oil into the American gulf coast due to turbulent weather.
However, the increase isn’t expected to be long-term.
“If you’re down below half a tank, I would hedge your bets and fill up today,” McTeague said. “Have enough to get past Monday, Tuesday, Wednesday when prices should reverse course.”
The industry is beginning to transition into their winter supplies, which will bring costs down for retailers and consumers.
McTeague said gasoline doesn’t require as many additives to stabilize in the winter months.
He predicts that by September 20, prices will return to around the 94 cents per litre range.
