Gas prices have been steadily increasing for the past few months as a variety of factors have been increasing the price of oil and gasoline.
But recent developments have caused the price of oil to fall, and those savings may be seen by Saskatchewan consumers soon.
Following the announcement of the omicron coronavirus variant, the price of oil dropped, due to the expectation that additional restrictions may put a damper on the demand for those products.
While prices may not have changed yet, President of Canadians For Affordable Energy Dan McTeague says that the threat omicron holds will eventually change things up.
"It presents the threat of reduction globally of demand, and for that reason," said McTeague, "oil has dropped overall since Friday about roughly $12 or $13 a barrel, it's hovering around $68 a barrel right now."
"What that's meant is that gas prices have dropped on North American markets, and in fact, all gas stations in the province have been given the notice that gasoline wholesale prices have dropped bout 13 cents per liter meaning, of course, sooner or later gasoline stations will pass those savings onto motorists."
McTeague says that it's difficult to determine how long this drop might last, as the event is tied to how the world responds to the new variant.
"I think it's really going to depend on further analysis by the world health organization," said McTeague, "Oil has really followed the same trajectory of the virus, the pandemic, and the rollout of the vaccines, as well as the ability to ensure that the pandemic is in check. We saw oil prices move from the beginning of 2021 from about $45 a barrel all the way up to $85 a barrel only now to come back down to $65-$68 and it's really following the headlines related to the pandemic."
He also recommends holding off on filling up for the time being as the local gas stations should eventually start passing on savings.
"If you're gassing up anywhere today, over the next couple of days, and you don't see gas prices down towards $1.30 I would hold off fueling up," said McTeague, "Because it's only a matter of time before gas stations pass on the 13 cent savings they've had."