Gasoline prices have hit what is thought to be an all-time high after the Ministry of Finance announced an increase of more than ten cents per litre.

The maximum retail price of gas has gone up 10.2 cents or 5.8 percent to $1.85 per litre — making it about 24 cents or 14.9 percent more than a year ago.

Diesel has increased 10.9 cents to $1.65 per litre, and kerosene 11.7 cents to $1.43 per litre.

The increase in Bermuda had been predicted by some, as a knock-on effect of soaring prices in the US.

Reacting last night, former Bermuda Taxi Operators Association boss Lee Tucker said many drivers were already "working at poverty level" and that the latest rise would mean it is even more difficult to make ends meet.

Earlier this week, Mr. Tucker had complained Government had not given taxi drivers a big enough fare increase to meet the growing costs of driving.

"The highest I can recall for gas is $1.80, so this is the highest," said Mr. Tucker.

"This is once again why we have to make a stand. We just can't be working in this controlled area and make a living. Our expenses are increasing rapidly but our income is being controlled.

"The majority of guys who operate as a business are going to be up in arms about this.

"We are working at poverty level — about $35,000 a year, which works out at $600 or $700 a week. They have got a family to keep.

"We can't seem to find a listening ear from Government. The fellows are up in arms about this but there's no one there to fight the cause."

Mr. Tucker, a former Progressive Labour Party supporter, previously warned drivers were losing patience with Government, after it reneged on a five percent fare increase two years ago, did nothing last year and gave a 10.5 percent increase this year — even though, he said, costs of driving had gone up more.

Last night, environmentalist Stuart Hayward said the price increase underlined the importance of saving energy by finding alternative modes of transport.

"Those who ride pedal bikes are saying 'I told you so'," said Mr. Hayward. "Because we are an affluent country, we have been able to absorb the costs of energy. We just generally haven't thought much about the real issue, which is that cheap energy is no longer available. Energy is going to cost more and more and either we are going to pay the price or we start using less of it.

"Individuals cannot reduce the price — they can reduce the amount they consume, which means finding alternative means of moving themselves around. I just got back from a visit to friends on my bicycle. If I can do this at 65, there are other people who should be doing that too.

"I would chastise our leaders for enabling larger cars and accommodating some people's wish to have the biggest and best cars. It's something that a responsible Government would not do. It would also be good for our Government leaders to take the lead in reducing its number of vehicles and consumption per vehicle for its fleet."