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There's good news for drivers today - gas has dropped to as low as $1.05 a litre across Hamilton.
Prices fell a full nickel at midnight.

So far, the price of gas has come down almost 34 cents a litre Since Sept, 14 when prices spiked  to $1.38 in Hamilton on fears Hurricane Ike would oil and refining facilities around the Gulf of Mexico.That's a drop of nearly 25 per cent. In Ottawa, they fell to 99 cents a litre.

Liberal MP Dan McTeague, who predicted the 4.6 cents drop Monday, believes it will go below a buck soon.

"They're giving back a bit of what they've been taking,"he said. "All in all it's a pretty good decrease."

The pump price here is now  inching closer to the U.S. price. Usually it hovers about 11 cents higher than U.S. gas prices, now it's only 8.5 cents higher, McTeague said.

McTeague feels the market is “giving back a little of the fleecing we got from February to July.”
“What you see now is a fine example of what happens when a bubble bursts that shouldn't have been created in the first place."

The price cut follows oil prices plunging to an eight-month low in Asia yesterday amid fears a significant slowdown in global economic growth will undermine demand. Prices did rebound somewhat this morning

Prices have fallen about 40 per cent since reaching a record at $147.27 on July 11.

Investor expectations about oil demand have turned completely around in the last three months as financial turmoil has sparked concern a recession could envelope the U.S. and Europe.

“Given the stresses and strains in the international financial system, the market is fearful of a severe international slowdown, especially in the developed countries,” Moore said.

World stock markets plunged Monday amid growing investor anxiety that the U.S. debt crisis is enveloping Europe. Germany announced a bailout package Sunday totaling $69 billion for Hypo Real Estate, the country’s second-biggest commercial property lender. Ireland, Iceland, Denmark and Greece moved quickly to guarantee bank deposits to ease consumer anxiety.

Investors are looking for signs that the Organization of Petroleum Exporting Countries may cut production if prices fall further. Iranian Oil Minister Gholam Hossien Nozari on Saturday called on fellow OPEC members not to pump too much oil in a bid to keep prices above $100.

However, OPEC may be reluctant to slash output since higher gasoline and heating costs would be a further drag on economic growth, Moore said.

“I think it’s very difficult for OPEC,” Moore said. “With the international economy looking weak, decisions to support oil prices have to be balanced against not making the situation worse.”

With files from Spectator Wire Services.