Retail Fuel Prices Jump Six Times In Less Than A Week

May 12, 2008 2:52 p.m. EST

New York, NY (AHN) - Oil prices on the international market set a new record of $126 a barrel on Monday. Although the price later decreased, the retail price also set a new record of $3.718 per gallon.

It was the sixth increase in retail prices in less than a week and the fifth consecutive price spike, according to automotive club AAA. The rise is by $0.01 cent and one-tenth of a cent from the previous day. Compared to a year ago, according to AAA, motorists are shelling out 21 percent more money for a gallon of gas, which used to retail then $3.064 a gallon.

CNN Money attributed the rise in oil prices over the weekend to evidence that Venezuelan President Hugo Chavez offered help to Colombian rebels, based on recovered documents from a dead guerrilla.

There appears no end in sight for the spiral in oil price hikes. A Goldman Sachs report last week, quoted by AP, forecasts crude prices could hit between $150 to $200 a barrel within the next two years.

Since diesel is the fuel used by most of the delivery trucks, vessels and trains, the non-stop soaring diesel prices had spurred similar increases in food and consumer good prices. Meanwhile, many consumers further tightened their belts and sought more affordable means of transportation such as commuting or car pools instead of using their vehicles to move around.