Mumbai: The American Automobile Association (AAA), which conducted a survey to identify the highest prices of gasoline in the US, has found the average price to be over $4 a gallon in a number of US cities.

AAA's survey of 100,000 service stations found the average price of a gallon of self-serve regular gasoline to be more than $4-a-gallon across 15 metropolitan areas this week. Bridgeport, Connecticut was at the head of the list, with an average gallon retailing at $4.10. Santa Barbara, California had pump prices going at $4.06, up from $3.58 a year ago. The average price in Orange County was $3.90.

Industry watchers and analysts seem to agree that high gasoline prices are impacting US consumption ahead of the Memorial Day weekend, which marks the traditional start to the summer driving season, when a number of Americans hit the road during the summer.

Diesel prices too are heading north, with the US government declaring that the national average was up 16.6 cents to a never-before $4.50 a gallon. AAA has deemed Alaska as having the most expensive gasoline on a state wide basis, retailing at $4.05 a gallon, followed by Connecticut at $4.03 and Illinois at $3.97. Arizona had the lowest state wide average at $3.59.

On the other side of the Atlantic, in the UK, fuel prices have started keeping cars off road. The spiralling prices of petrol, as gasoline is known in the rest of the world, along with those of diesel have got the UK's drivers thinking twice about heading out in their cars, according to a survey by the Automobile Association (AA) of the UK.

In a poll of 17,500 members, the AAA found 27 per cent to have cut back on other areas of spending, 16 per cent having decided in favour of lesser travelling by car, and 21 per cent as having done both. The BBC, in a report, said that government figures show car traffic falling 2 per cent during the first three months of 2008, as compared to a year ago.

The Petrol Retailers Association is expecting the average prices to increase by around 5 pence a litre by the weekend, following the trend of last week when prices went up by 3 pence. The average price of a litre of unleaded petrol in the UK currently hovers at 113.01 pence, while the average diesel price is at 124.87 pence. Three months ago, the averages were 104.02 pence for unleaded petrol, and 109.30 pence for diesel.

A lack of diesel refining capacity is said to be the cause of a faster hike in diesel prices.

Backstage, oil rallied past $127 a barrel on renewed supply disruption fears and OPEC's reluctance to raise output. US light crude for June delivery went up 20 cents to $127.25 a barrel, with the Friday's intraday record of $127.82 being within range. London Brent crude was up 4 cents at $125.10.

Supply fears, according to sources, have their roots in a global diesel boom that is being led by China, the Middle East, South Africa and South America, who use diesel-fuelled power generators. Additionally, a 24-hour strike is scheduled at the oil port of Fos-Lavera, where port workers are protesting against privatisation of the loading activities in state-run ports. If that weren't enough, sources say a spate of attacks and sabotage have shut around 559,000 barrels per day in Nigerian production. Yet, the oil cartel of OPEC maintains its customers don't need more oil, and the prices were on account of speculation, geopolitical issues, and a weakening dollar. Saudi Arabia has said that it has boosted output by 300,000 barrels per day to meet demand and compensate for other producers' lower output.