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Weyburn residents are feeling the pinch at the pump as gas prices in the region climb sharply. This recent increase is primarily attributed to a significant disruption at a major U.S. refinery in Illinois, which has been offline for over a week due to severe weather-related power outages.
Patrick De Haan, Head of Petroleum Analysis at GasBuddy, explained the situation, saying that gas is higher than we would like due to a refinery in Illinois.
“They process approximately two hundred and 70 thousand barrels of fuel per day and have been out of commission since early July. The outage has led to the loss of around 35 million gallons of fuel, or about 100 million litres. This substantial reduction in supply has caused wholesale gasoline prices to spike.”
The impact is evident in Weyburn. Local gas prices have surged to approximately $1.64 per litre, reflecting an 8-cent increase over the past week.
“This sharp rise in prices is part of a broader trend affecting much of the prairies, including Saskatchewan,” DeHaan noted.
De Haan expressed cautious optimism about the situation.
“While damage assessments at the Illinois refinery are ongoing, I hope the refinery could resume operations within one to two weeks. If repairs proceed smoothly, we might see a stabilization or even a decrease in gas prices by early August. However, the extent of the damage and the refinery’s ability to return to full operation will determine if further price increases are on the horizon.”
Despite the current uptick, De Haan is optimistic about potentially easing gas prices.
“As we move into the fall and the switch to cheaper winter gasoline approaches in about six weeks, we should see some relief. Additionally, economic factors such as a global slowdown and reduced demand have kept gas prices closer to historical averages compared to the peaks seen in recent years due to the pandemic and geopolitical issues, including Russia’s ongoing conflict with Ukraine,” he added.