06/28/2012 09:47 EDT | Updated 08/28/2012 05:12 EDT

Toronto gas prices drop ahead of long weekend

Gas prices are dropping ahead of the Canada Day long weekend — a decrease not seen for about 20 years.

"Never happens," said Dan McTeague, founder of the web site Tomorrow's Gas Price Today. "I mean you'd have to go back to the early 1990s where you saw prices on the long weekend drop."

McTeague said he expects gas to drop to 117.7 cents a litre on Friday. A year ago on the same date it was 126.8 cents a litre.

The former MP said the price drop is because people are using less gas.

"If you see prices trend down further it's probably a reflection for the first time in a long time about market fundamentals," he said. "Supply and demand should be dictating price. It hasn't for a long time and now it is."

Earl Sweet, a senior economist with BMO Capital Markets, said the drop has as much to do with investors worried about the state of the world economy. The uncertainty in Europe means that investors are expected to stay away from risky commodities like oil and gas.

The lower prices will likely stick around, he said.

"I think we'll see be seeing oil prices probably in the $75, $85 dollar range over the course of the summer and that'll probably keep gasoline prices pretty close to where they are now if not perhaps a couple of cents lower," he said.