Fuel prices at the gas pump went up dramatically at the stroke of midnight on Tuesday morning, March 22.

The premium gasoline jumped $1.12 and now costs $11.54 per gallon.

The price of regular gasoline increased by $1.11 and is now selling at $11.24 per gallon. Diesel fuel shot up by 99 cents and is now $10.60 per gallon.

In his budget presentation on March 11, Prime Minister Hon. Dean Barrow informed the nation that government would have absorbed the increase in acquisition cost for the shipment of fuel that was being delivered around that time.

By so doing, the government took a revenue loss of around one million dollars.

The Prime Minister had warned, however, that the government can only do this one time.

World oil prices continue to rise due to the instability in the Middle East and in particular the ongoing conflict in Libya.

In New York, the price for a barrel of crude oil for April increased by $1.67 at the end of trading on Monday.

Experts warn that the Libyan production of 1.7 million barrels a day has been slashed by 75%. They also sounded the alarm that Libyan oil is not likely to return to the market anytime soon.

There are reports that another oil price increase is in the making for later this week.

The Reporter