Gas prices rise in Saskatoon despite low cost of oil

The cost of gas is rising after months of plummeting prices.

After steadily dropping since late 2014, gas prices are going up despite the continued low cost of oil.Pricesdipped below 80 cents per litre in Saskatoon, according to GasBuddy.com.

• Another gasoline hike at some Regina stations

There are still a few Saskatoon stations selling gas for under 80 cents, butthe average cost per litre in the city is now 84.9cents. At this time last year, a litre cost $1.11.

Railway Gas on Avenue B kept its prices at 79.9 cents per litre for most of Thursday morning. Manager Darrell Fehr said it is how the independent business keeps customers coming back.

"We fill a lot of cabs, people with fleet vehicles they can't always get down here before the price goes up," Fehr said.
"We keep it down depending on when we get a load of fuel, and then I average my rack price out to my margins and I still try to keep it down for as long is possible."

On occasion, Fehr said Railway Gas has kept its prices at the pump lower than the competition for as long as 24 hours. When they do raise the price they always offer twocents per litre off at the till, regardless of the cost.

Long-time drivers in the city know this and expect lower prices at the station.

Delivery driver Paul Pedersencomes to the station regularly to fill up. He said he does not understand why gas prices are climbing while the cost of oil remains low.

"You know it just doesn't make any sense," Pedersen said. "I don't know where the logic comes from that, but I am not an economist."

Market experts say today's jump at the pump is caused by a low Canadian dollar.

The average price in the province is 85.5 cents per litre and the national average is 90.4 cents, according to GasBuddy.com.