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Fuel prices are up for Saskatchewan compared to twelve months ago, and that trend may continue in the new year.
The average price is now $1.73 a litre, $0.18 a litre higher than where they were a year ago.
"2024 brought with it some challenges," said Head of Petroleum Analysis at Gas Buddy Patrick De Haan. "Gas prices have continued to slowly moderate now with the continued rise in the carbon tax. We did end up paying a little bit more in 2024 and unfortunately if the carbon tax is to increase again in 2025, that's kind of the reoccurring theme."
"Oil prices remained relatively affordable most of the year, spending time between $65 to $85 a barrel. It was not an exceptional year when it comes to the price of oil. But the carbon tax, the weakened currency as we are closing out the year has been negatively impacting what motorists are paying at the pump."
That trend could continue into 2025, especially if the Canadian dollar continues to take a hit.
"Every year we continue to see more of a disconnect between the price of oil and what we're paying at the pump," De Haan said. "A lot of that has to do with the continued steady increase in carbon taxes on a yearly basis, but a lot of what we're seeing here recently to cause prices now that are ending the year 16 cents higher than last year, really has to do with the weakened Canadian dollar against the US greenback. We've seen (US) President-elect Trump take target at Canada with potential tariffs. It has weakened the Canadian dollar, which negatively affected the price of gasoline in Canada, pushing it higher."
He added Alberta has some of the lowest prices among our neighboring areas. Manitoba's prices have been lower than Saskatchewan's, but their gas tax "holiday" is expiring today.