We are starting to see fuel prices drop a little after they dramatically rose around Christmas.

The reason for the increase was the not so surprising Carbon Tax, which saw an increase at the pumps of 4.7 c/L.

Dan McTeague, Senior Petroleum Analyst for GasBuddy says in addition to the Carbon Tax what contributed to the higher prices was the perceived supply shortages out of the Chicago Midwest market. Now that is no longer an issue and we’re back to regular trading we should see prices drop a little bit more.

"This is really the third trading day in a row. We are seeing some wholesale prices dropping as a result of less supply concern out of the Midwest U.S. That is really why prices are set to drop probably about 3.0 c/L by Thursday or Friday and maybe even 4.0 c/L by Sunday if we are lucky."

This means, January 9, prices remain at 107.9 c/L but expected to drop to 104.9 c/L by January 12 or 13.

Into the second week of the New Year OPEC will now have to prove it has reached an agreement to cut oil production; keeping supply low and prices high.

"It's one thing to come out and say we have an agreement, talk about the agreement. It's quite another to prove. That's why I think it's critical for OPEC and those who agree to go along to show that they are in fact heading towards that goal in terms of dropping in real terms the amount of crude their producing and widdling down the over supply of global crude."

McTeague adds if they don't prove it, oil will remain depressed. As proof, on January 9, the price dropped almost two dollars a barrel.

For LIVE fuel price averages, visit here.