Gas prices in Kindersley did not see an increase over the Canada Day long weekend, however, without the spike, at almost $1.22 per litre, prices at the pumps remain among the highest across the province.

Going into the long weekend, Dan McTeague, Senior Petroleum Analyst, said the majority of gas stations were paying approximately $1.07 per litre. He said this cost coupled with operational costs, estimated between eight and 12-cents, the consumer price should come in around $1.15 - $1.19 per litre.

McTeague said, “it’s not a matter of if, but when, the prices will decrease in Kindersley,” stating that he doesn’t expect the prices at the pumps to remain elevated over the rest of the provinces pricing, but that could change as the market fluctuates.

As of Tuesday afternoon, other gas stations across the province were reporting the following prices, these exclude warehouse fuel prices found at merchants such as Costco:
• 100.9 – Regina
• 111.9 – Saskatoon
• 112.9 – Moose Jaw
• 115.9 – North Battleford & Yorkton
• 117.9 – Biggar
• 119.9 – Macklin
• 121.9 – Kindersley & Humboldt

McTeague added, gas stations that are selling below $1.15/L are selling their fuel below cost, in which, they are likely making up revenues through mark-ups in other areas of their business.

When asked how he believes the passing of Bill C-69 and C-48 will affect the prices at the pumps, McTeague said he doesn’t think it will have a direct impact on consumer fuel prices, however, indirectly, through the Canadian dollar, we may experience an unfavourable shift.

“If a pipeline were to be approved, the process now is going to be very difficult, so what that could mean perhaps, in the days to come we could see a bit of a run on the Canadian dollar, which may increase the price of gasoline.” McTeague said although this is an unorthodox cause and effect, it is a distinct possibility with the current state of the oil industry in Canada.

“That sounds for some to be pretty out there, but I deal with the effects of oil on the Canadian dollar everyday. I can tell you with absolute certainty, when oil prices go up – the Canadian dollar strengthens, when oil prices fall – the Canadian dollar tends to fall with it. In this case however, when you loose billions of dollars in investments, from other countries or people pulling their money out of investments and converting it into billions of dollars into other currencies, you can expect further pressure on the loonie”.

Furthermore, McTeague theorizes a continuation of downsizing in the oil industry. According to his sources, Talisman Energy already implemented layoffs letting go close to 1000 employees and Aspen, which is Imperial Oil, is likely not far behind with layoffs either.

McTeague stated he is very concerned for Canada’s number one industry, oil and gas,. Although he said he hopes he is wrong, he feels this is a tipping point for the industry and investors will answer to what the government has done federally, with further disinvestments from the Canadian oil industry.