Moose Jaw is in luck when it comes to gas prices, as they dropped by six cents per litre on Wednesday, down to 166.9 at most stations within the city.
This is something that might happen more frequently says GasBuddy Petroleum Analyst, Patrick DeHaan.
“Wholesale gas prices have declined significantly giving stations more room to lower their price,” says DeHaan. “I expect this isn’t the end, at least for now, I do think that we could see gas prices fall another five to 10 cents in the next week or two as long as there are no new refining issues and other noise.”
As of Thursday morning, according to GasBuddy, nine of the 10 listed stations are reporting a price of 166.9 cents per litre.
DeHaan couldn’t predict how long this trend will last and is contingent on how the market holds over the next few weeks.
“We get new data every week, but for now falling prices at the pump at least for gasoline, maybe not so much diesel fuel, which remains at over $2/litre. Gasoline is a little different, and gasoline supplies are doing better.”
“Overall it’s just a balance of supply and demand and right now supply is exceeding demand and that’s what drives prices down.”
The average fuel price in Moose Jaw is 166.9, while the province has an average gasoline price of 165.8 cents per litre.
It’s been a rough year on motorists' wallets when it comes to gas prices, as there has been so much fluctuation this year, caused by so many different factors.
DeHaan states one of the biggest factors in the volatile oil market is the lack of breathing room due to refineries cutting capacity since COVID-19.
“(There is) less margin for error. When one refinery has maintenance or issues arise, things can tighten quickly, the supply can drop quickly, and prices can shoot up as a result. When things are good, they’re fine but it’s been a bumpy year for refineries who’ve encountered issues here and there and that’s why we’ve seen the volatility.”
Another factor to the bumpy ride the oil market has taken this year was OPEC’s decision (Organization of the Petroleum Exporting Countries) to cut production to the U.S., which was made official on Oct. 5.
They agreed to decrease production by 2 million barrels per day to the United States starting this month, which will and continue to affect Canada.
As of Thursday morning, the most expensive price of gasoline in Canada is in White Rock, B.C. at a staggering price of 204.9 cents per litre. The cheapest is out west in Lacombe, Atla., with a low price of 127.5.