pumping gas
Gas prices have been steadily dropping across the province, including here in the southeast. (File Photo)

Everywhere people drive, they are seeing the price of gas come down. From an average of $1.25 a litre only a few weeks ago, prices in Saskatchewan are now hovering around the $1.13 a litre mark, including here in Weyburn.

The drop in oil prices during the month of October is one reason. The other is many refineries that were taken offline for regular maintenance are now back up and running. The result is the wholesale price of gas is ten cents a litre lower than it was before, hovering around $0.70 a litre.

Dan McTeague, a former Member of Parliament, is now a Senior Petroleum Advisor with GasBuddy.com, a website that tracks gasoline prices across North America, and identifies trends in the industry. He says that with those two factors, plus consumers adopting vehicles that get them more miles to the gallon, are the main factors for the price decline.

"Your level of productivity has gone up, and your level of consumption has gone down. That's been a world wide, but more importantly, a North American phenomenon, as vehicles have become more efficient," McTeague said in an interview Wednesday.

Some parts of the province are seeing gasoline prices drop to as low as $1.06 a litre, but that is not necessarily the case everywhere. The biggest reason, McTeague says, is because of the price that was paid by the gas station when they last filled their tanks. He added that will change as wholesale purchases are made.

"A few more days, maybe a few more weeks, not likely that long, in order for the prices to go to where they are in say Regina today, at $1.08, or even up towards Saskatoon at $1.06."

Analysts are predicting that the price of oil will continue to decline for a number of reasons, including the increased output from Canada and the U.S., and OPEC nations not reducing their output as well. All of these things are slowly coming together to help consumers, according to McTeague, and there could be more relief at the pumps coming.

"There's no sign that at any point in the future where they will start to go back up again, certainly not until the end of this year."