Motorists will pay less at the pumps in future, with news of a 1.4 cent per litre drop in the price of gasoline.

The maximum retail price is now $1.74 per litre - although that is still significantly higher than the $1.61 gas cost this time last year.

Reacting to the news yesterday, taxi driver Lee Tucker said he feared the price drop will only be a short term relief.

"I'm in Philadelphia right now where they are saying gas will be close to $100 a barrel soon. It's $80 a barrel at the moment but they are expecting an increase in the cost of fuel shortly," he said.

This, he fears, will have a knock-on effect in Bermuda - where he claimed that cabbies are struggling.

"The majority of taxi drivers are not making a profit, they are not even coming close to making a profit. If a future increase comes about in the cost of fuel in the long term - and we are facing the off season - it will be very grim," he said.

Although Premier Ewart Brown recently hinted at the possibility of a fare hike for taxi operators, Mr. Tucker called for that to be made reality - or for gas to be subsidised.

Along with announcing the change in the gas price - which kicked in on Tuesday - the Ministry of Finance also revealed slight rises in the prices of diesel and kerosene. The maximum for diesel is down 1.7 cents per litre, with the maximum charge now $1.54 per litre compared to $1.38 a year ago. Kerosene is 1.6 cents per litre higher, standing at $1.31 now compared to $1.15 per litre 12 months ago.