With the cost of gasoline the highest it has ever been in Saskatoon and Regina at $1.88 and $1.84 per litre, respectively, what factors play a role in determining the price?
Forty per cent of the price is based on the global market price of crude oil, which, according to Yahoo Finance, as of Monday is around US$117 a barrel. That is double the price of oil in December 2021 at US$68.
University of Regina economics professor Jason Childs says there is a lot of saved money sitting in people’s pockets from the pandemic that will likely be spent on gas.
“There are pockets of people that continue to be paid what they were paid before the pandemic, but their expenses went way down. There is money in the system and it’s likely to be spent on fuel,” said Childs.