One analyst says that fuel costs are expected to decline to an average price we haven't seen since May in Southern Ontario.

Dan MacTeague, head of the Affordable Energy Agency, stated that prices are set to drop below $2 per liter.

MacTeague said, "We are on track to see the possibility of gas prices falling below $2 per liter next Sunday."

This would be the first time since the end of May that the average fuel price in Ontario drops below $2.

We witnessed a price drop of three cents on Wednesday followed by another one-cent reduction on Thursday. MacTeague expects prices at stations to fall another three cents on Friday.

MacTeague explained, "Every time job numbers are good or inflation numbers are very high in the US and Canada, the market's response is inevitably a rise in interest rates. And with rising interest rates, the perception is that it will dampen demand for everything."

In the same context, he said this would be a short-term gift to consumers, but in reality it means there is a fundamental shortage that must be addressed, which is a supply shortage.

He added, "The bottom line is that I do not expect prices to recover. There are many shocks in the market right now."

Edited by: Dima Abu Khair