Drivers filling up in Weyburn are enjoying a significant discount at the pumps compared to those in nearby cities. As of Monday morning, the price for a litre of regular gasoline in Weyburn was $1.299. That’s 14 cents cheaper than in Regina, where prices were sitting at $1.439, and five cents less than in Estevan at $1.349.
According to Patrick De Haan, head of petroleum analysis for GasBuddy.com, the primary reason for the local savings is simple: competition. He explained that the wholesale price of gasoline recently saw a drastic swing after a major U.S. refinery temporarily shut down.
“Competition is one of those all-encompassing factors,” De Haan said. “Some of the stations are likely offering to pass along the savings a bit quicker than what we're seeing in other areas.”
Looking ahead, De Haan expects prices to continue trending downward for most drivers as fall progresses. Two main factors contribute to this seasonal drop. One is a decrease in demand after the summer road trip season ends, and the other is the upcoming switch to a less expensive winter blend of gasoline.
“The cheaper type of gasoline used in the winter months, when air pollution is not so problematic as temperatures cool off, generally leads to prices that are a few cents a litre lower during the fall,” De Haan noted.
However, he cautioned that this downward trend does not apply to all fuels. Farmers and truckers should brace for higher costs, as diesel prices are expected to rise.
“We do tend to see diesel and heating oil prices going up into the colder weather, and that's simply because the demand curve for diesel is pretty much the opposite,” De Haan explained. “Farm consumption also goes up in the fall weather for diesel, as farmers get out and harvest their crops.”
While the forecast generally points to lower gasoline prices, De Haan added that hurricane season remains a wildcard, as storms impacting U.S. refineries can have a direct effect on Canadian markets.