SASKATCHEWAN — For months, fuel prices climbed across Saskatchewan amid the U.S.-Iran war, but what impact did those higher costs have on municipalities?
SaskToday has reached out to various municipalities about the impact.
Regina
The City of Regina is projecting fuel expenses of $8.2 million in 2026, exceeding its allocated budget of $8.1 million by $100,000, according to a statement.
That compares to $7.5 million in fuel expenses recorded by the city in 2025.
While fuel prices can affect budget projections, the city says the impact is reduced through established agreements and bulk purchases of fuel.
Saskatoon
Saskatoon services are affected by fuel costs, particularly diesel prices, noted chief financial officer Clae Hack. Daily operations such as transit, street sweeping, and snow and ice clearing rely heavily on diesel-powered equipment to provide these services.
In its 2026 budget, Saskatoon estimated a cost of $1.46 per litre for diesel. However, this number has varied from $1.01 per litre at the beginning of the year to $1.73 per litre in May.
Like Regina, Saskatoon also has established agreements and bulk-purchases fuel.
“The average cost to date has been approximately $1.40 per litre under the city’s fuel contract,” noted Hack.
If fuel and diesel prices are more than the budget, Hack said the city can fall back on its fiscal stabilization reserve, which has a balance of more than $16 million.
Looking ahead at future budgets, Saskatoon would proactively adjust its expected fuel expenses.
Fuel prices could also impact future construction projects, noted Hack.
“[In this event] the city would need to re-examine the individual scopes of work, potential reductions to scopes of work or seek approval from city council for increased capital project funding prior to proceeding with any capital or construction projects that are over budget.”
White City
White City had no direct information on how fuel prices impact its operations, it said in a statement.
However, in its most recent budget, White City included a three per cent inflationary adjustment to help cover rising operating costs, including internal fuel expenses and broader increases across the supply chain.
The approach by the municipality was consistent with the province's inflation forecast.
