Toronto has been enjoying the lowest gas prices since 2003. While the prices have dipped to a low of 65.5 cents/per litre in the last few days, prices exactly one year ago were $1.05/litre. Check Toronto Gas Prices for the cheapest gas in your area.

Nothing makes sense anymore and the explanations offered to explain the fast and dramatic dip in gas prices is nothing more than nonsense. The pundits are attributing the drop in gas prices to a decreasing demand for energy as a result of the uncertain economic climate. People are driving less. In response OPEC, which controls about 40% of world petroleum production, announced a production cut of 2.2 million barrels per day and since the price slide has begun, OPEC has said it will further cut its output by four million barrels per day. As a rule a shortened supply leads to higher prices, not lower prices. So why has the price at the pumps dipped? No one is offering any explanations that make sense.

Michael Ervin, president of a Calgary-based consulting firm, predicts that gas prices will likely remain steady for the foreseeable future. MP Dan McTeague says that prices could still be lower if there was any competition in the industry. Low gas prices literally drove Torontonians to the pumps, causing gas shortages at several stations on Christmas Day. However, according to Jane Savage of the Canadian Independent Petroleum Marketers Association, most of the affected stations were Esso, supplied by Imperial Oil. The cause of the problem has to do with a 36-hour outage at the Imperial Oil terminal.

Long may the cheap gas prices continue!

Image courtesy Flickr.com - it was never that low, just a chance photo