Last week, the price of gas dropped by 10 cents down to 189.9 cents per litre in Moose Jaw at all stations, a price which hasn’t been seen since the middle of May.
As of July 20, the average price of gasoline has dropped in Moose Jaw from 199.9 down to 189.9, just three cents per litre more than the provincial average.
GasBuddy Petroleum Analyst, Patrick DeHaan says that a number of factors have come into play to cause gas prices to drop in Moose Jaw and across the country.
“I think a lot of factors are concerns over a slowdown in the economy,” says DeHaan. “We have seen things slow down in the U.S., as the Federal Reserve raises interest rates. Much of Canada is a price taker from the US. Much of the direction can be impacted by what happens in the U.S. We’ve also seen slight improvements in supply, gasoline supply has been up four out of the last five weeks in the US, which has likely pulled prices down as well.”
As of July 20, DeHaan notes that the price of West Texas Intermediate Crude Oil is something to keep an eye on it has slowly edged up in the past few days.
“Oil prices have perked up modestly this week at least so far on Monday and Tuesday. We have seen oil prices that are about $10/barrel higher than the lows we saw last week. Oil prices are something to keep an eye on.”
Though oil prices are inching up, DeHaan is hopeful that this most recent price drop is a sign of more to come.
“I hope so. I’m hopeful that we could see prices move down another 10 cents a litre. So long as there are no disruptions that are unexpected, we are coming to the peak of hurricane season here in the next few weeks. Barring any outside factors, I do think we will continue to inch down, like I said it wouldn’t surprise me if we get down to 179.9, or we could even drop to 169.9 in the next few weeks.”
DeHaan did want to mention that the conflict still ongoing in Ukraine, that have caused gas prices to stay somewhat stagnant at their current positions with little movement.
“It’s not an active factor, it’s not pushing prices up or down but it’s keeping prices elevated, it is likely something that will remain a factor in why prices are elevated until there’s a resolution.”
Golden, B.C., is the hot spot for the most expensive gas in Canada at 219.9 cents per litre, and on the other end of the spectrum Thunder Bay, Ont., is the country’s cheapest price of fuel at 159.0.