The price of oil has plummeted more than $10 since it hit a record high last week and drivers are reaping the rewards of the significant dip.

Gas prices in the GTA fell for the second straight day Thursday selling for $1.29 at many stations across the city. This followed a four-cent drop over night Tuesday when a litre of fuel was going for about $1.31.

Decreased demand due to sky-high energy costs and increased U.S. inventory are responsible for the relief, if only temporary, at the pumps this week.

After hitting a record $147(US) Friday, a barrel of crude was selling for $134.49 Thursday. On Wednesday the price dropped about $6.50, which represented the biggest one-day reduction in the cost of oil in 17 years.

Despite the dramatic shift, the cost of oil is still well above what it was last year -- about 80 percent higher.

Wednesday's drastic drop came in response to a grim economic forecast by U.S. Federal Reserve Chairman Ben Bernanke, who claimed the slowdown could last for years.