US petrol prices hit record high
WASHINGTON - US petrol prices at the pump shot to a record high this month, forcing consumers to feel the financial pain of the threatened war in Iraq, a motorists' association says. Prices leapt to an average of $1.719 a gallon of regular petrol (45.4 cents a litre) from $1.63 a month earlier, the American Automobile Association said.
It eclipsed the previous record of $1.718 a gallon set May 15, 2001, the AAA said.
"Motorists should also be prepared to resist the urge to immediately buy gasoline following a possible declaration of war on Iraq, or the commission of a terrorist act," AAA said in a statement.
"This is because the panic buying of gasoline and the formation of gas lines have the potential of causing needless fuel shortages in local areas," it warned.
AAA spokesman Geoff Sundstrom said oil prices rose as a possible war approached in Iraq, much of the US had an icy winter, and Venezuela's oil industry was temporarily hit by a strike.
Many US states also require gasoline stations to convert to a costlier, lower emission gasoline when warmer weather arrives, pushing up prices around this time of year, he said.
Petrol demand, despite the price increase, remained strong, Sundstrom said.
"The American economy is largely geared towards the operation of private vehicles rather than the use of public transport, so we say that gasoline (petrol) demand is really inelastic," he added.
AFP