Fuel prices surge in Sask. as market continues to fluctuate, but how high could they go?

Gas prices in Saskatchewan surged overnight, climbing to an average of $1.38 per litre, following a national rise in fuel costs. Donovan Maess reports.

The price at the pump experienced quite a stark increase ahead of the weekend in Saskatchewan but analysts are wary of predicting how high it could go.

On Friday, the price of regular fuel in Saskatoon hit $1.509 per litre, while in Regina, prices reached $1.499 per litre.

“You have to go back to the summer of 2023 the last time you saw prices over $1.50,” Canadians for Affordable Energy president Dan McTeague told CTV News. “That was a combination of oil being at $81 a barrel, $10 less than what it arrived at today, and the federal government’s carbon tax which was another 18 to 20 cents.”

Across the province, fuel prices have risen significantly this week.

As early as Wednesday, the average price of regular gasoline in Saskatchewan was $1.324 per litre. On Thursday, the average price was $1.344.

Another increase coming overnight, as prices rose another four cents on average to $1.382 per litre.

However, that is just the average.

Some stations in Regina went from $1.369 on Monday to $1.499, a rise of 13 cents.

McTeague says the cause remains the ongoing conflict in the Middle East and volatility in the oil market.

“As we morph from a strike to a more protracted war, it becomes a bit of an economic quagmire,” he said. “In which the first initial hit is to consumers for fuel.”

How high could the price go?

GasBuddy petroleum analyst Matt McClain would not give a prediction.

“To say what I believe will happen four weeks from now, I would probably have a better chance of hitting the bullseye of a dart board with a dart three times in a row,” he said. “And I’m not great at a shot like that.”

• Download the CTV News app to get breaking news alerts sent to your device

McTeague warns the longer the fight goes in Iran the more costly it becomes.

“It becomes part of our inflationary cycle, which no one really anticipated,” he added. “That means higher interest rates, it means higher costs for everything and it’s not a good situation.”

Saskatchewan is reliant on high oil prices within its provincial budget, but despite current conditions, the outlook for its upcoming budget are unlikely to change.

“While prices are high right now, which helps the revenues of the province, these fluctuations could easily be short-term,” Minister of Finance Jim Reiter told CTV News in a statement. “We will continue to work to provide the best estimates we can.”