Saskatoon

Saskatchewan gas prices could drop even lower

A national expert on gas prices believes the low prices we've been seeing at the pump could last all winter.

Prices could drop between four to five cents, likely to stay low until spring, expert believes

Expect gas prices to remain low throughout most of the winter. (CBC)

A national expert on gas prices believes the low prices we've been seeing at the pump could last all winter.

Jason Toews, co-founder of the website GasBuddy.com, believes gas prices are likely to go down another four or five cents this winter, and will likely stay there for the most part.

"In Regina, we're almost below 90 cents a litre," said Toews. "We're actually seeing some of the lowest gas prices in the country right now."

Gas prices saw a similar dip at this time last year.

So, what's going on?

Toews says it's a simple matter of supply and demand.

"During summer driving season, there's a lot of demand for gasoline," he said. "People are going out to the lake, they're taking family vacations, and of course, we've got a strong agricultural society here, so a lot of farms are using fuel."

In the summer, many refineries run at full capacity, meaning they are already making as much gas as they can. When demand spikes, the price at the pump can spike as well, regardless of low crude prices.

"Gasoline gets a little bit disconnected from the price of crude oil in the summer months because of the law of supply and demand," Toews said.

Other than a likely spike around Christmas, gas prices are expected to stay low until the spring.

Once April or May hits, prices are expected to return to the $1.20/litre mark.

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