US petrol prices hit record

Petrol prices in the US have hit an average of US€4 for the first time – less than half the price paid by British motorists at the pumps.

The American Automobile Association and the Oil Price Information Service said the national average price for a gallon of regular petrol rose to 4.005 dollars overnight from 3.988 dollars.

A US gallon, which is smaller than an imperial gallon, is the equivalent of 3.785 litres, which means US motorists are paying about US$0.95s a litre.

Petrol prices are expected to keep climbing, putting greater pressure on consumers and businesses, because the price of oil is soaring in futures markets. Light, sweet crude shot up nearly US$11 a barrel on Friday and approached USD$140 dollars for the first time.

Along with higher fuel costs, consumers are also contending with higher prices for food and other goods because of rising transportation costs.