A Co-op station in Prince Albert shows a price of 189.9 on July 7, 2022. (Derek Craddock/paNOW Staff)

By Derek Craddock

DOWN, DOWN, DOWN

Fuel prices start to drop in northern Sask.

Jul 7, 2022 | 1:13 PM

Looks like gas prices are starting to drop in parts of northern Saskatchewan.

According to GasBuddy, at least two stations in Prince Albert are sitting at 189.9 c/litre as of Thursday morning, a drop of roughly five cents.

A look at some gas prices in Prince Albert (GasBuddy.com)

Meanwhile, prices in the northwest and northeast regions are holding at around 194-199 c/litre.

Currently, the provincial average is sitting around 197.6 c/litre.

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Gas prices dropped about 12 cents a litre overnight in Ontario and are down across much of Canada after a drop in the price of oil this week.

GasBuddy has reported prices are down to about $1.79 in major cities in Ontario from $1.91 on Wednesday, while cities like Vancouver and Montreal saw prices drop around six cents.

Rory Johnston, the founder of Commodity Context, says the lower prices at the pump come after crude dropped by about US$10 a barrel to fall below US$100 a barrel on Tuesday.

He says consumers are also seeing lower prices because refining margins, which have shot up on limited processing capacity and high gasoline demand, have dropped about 25 per cent in recent days.

The drop might be temporary as some of the declines were likely from investors unwinding speculative positions, says Johnston, while the fundamental problem of supply shortages remains an issue.

He says he expects continued volatility in prices as investors weigh recession fears against high current demand.

–With files from The Canadian Press