Regina sees decrease in gas prices to start 2019 while most of province stays stagnant

Most of Saskatchewan didn't see a major change in gas prices to start 2019 — except for Regina.

The average price in the Queen City was 94.3 cents per litre on Dec. 30 but has since dropped to 90.6 cents per litre, according to GasBuddy.com.

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But that isn't expected to last long.

Dan McTeague, senior petroleum analyst for GasBuddy.com, says Regina gas stations are generally more competitive than in other parts of Saskatchewan, but he expects prices to match the rest of the province in about a week. 

He also expects prices to increase province-wide beginning in February.

"Throughout the year we're looking at a wild ride at the pumps, extreme volatility in terms of week-to-week prices," said McTeague.

"Although we'll continue to benefit from retailers who have those retail margins, the underlying fundamental price is likely to raise itself back up perhaps as much as 30 cents per litre by April, May, June, July and into September."

He said the average price in Saskatchewan is about 14 cents less than it was this time last year. This is largely due to low oil prices in Canada, he says, which has also contributed to a depreciating Canadian dollar compared to this time last year.

"We cheer that we're saving a little bit here, but everywhere else we're paying a lot more," he said. "I think we have to look at the bigger picture, and the bigger picture is not a pleasant one for Canada."

He said low oil prices have "a number of implications" on the Canadian economy, such as fewer jobs and investments.

Residents are filling up

Several Regina residents were taking advantage of the low gas prices on Wednesday.

"They're great right now, but they're probably going to jump before we start hauling our trailers," said Regina resident Dale Strandlund while he fuelled up his vehicle. He said he's not concerned about the low prices, as long as they stay around $1 per litre.

John Owens, another Regina resident, was more pessimistic.

"[Gas prices] are good so far, but if Trudeau has his way they'll go up again," he said, referring to the federal carbon tax that's scheduled to take effect April 1.

The carbon tax will add an additional five cents per litre to gas prices, according to the Canadian Taxpayers Federation.

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Prices around the province

Saskatoon's average is 97 cents per litre, which is the same as Dec, 30, while Prince Albert also stayed the same at 100.9 cents per litre.

Swift Current's average also stayed stagnant at 102.9 cents per litre.

The provincial average is 97.7 cents per litre and the national average is sitting at 102.2 cents.

The average price in Saskatchewan was 130.5 cents per litre about six months ago — something McTeague says isn't "normal to see something drop that rapidly."

He says a drop that large in six months hasn't been seen in the province since the global recession in 2008.