Gas prices around the province have just risen to just under $1.90 per litre. According to Dan McTeague, president of Canadians for Affordable Energy, there are several contributing factors for the spike in fuel prices. One of the factors involves the escalating conflict in Saudi Arabia between the Yemeni government and the Houthis, which has knocked the Saudi infrastructure offline. McTeague also said that just days ago, the Ukrainian government launched a missile and drone attack on a Russian oil refinery. With Russia and Saudi Arabia currently out of business, that leaves two out of three biggest oil producers in the world without the ability to produce a lot, McTeague said. Another main factor in the price jump was the shutdown of the Joliet Exxon Mobil refinery in Chicago on Monday due to a power failure. “That affects the Chicago spot market, which affects all the prices by which refiners take their marching orders south of the border in the US Midwest,” McTeague said. “And the effect of that is certainly going to linger until they’re able to get that resolved. It means that there’s a shortage not just of diesel but of gasoline in the region with one of the major refiners knocked out. So, you can see why the US Midwest and the prairies here have a what looks like a shortage. And markets are reflecting that at the pumps.” The good news for Saskatchewan motorists is that according to McTeague, once the Chicago refinery is back up and running, consumers should see a bit of a relief at the pumps. McTeague expects the prices to be reduced to around $1.70 per litre heading into the fall season.
