Yankee To Start Walking: Fuel Leaps

Gasoline and oil prices pushed further into record high territory Tuesday, with retail gas reaching a national average of $3.51 for the first time and crude nearing US$120 as the U.S. dollar fell to a new low against the euro.

At the pump, the national average price of a gallon of regular gas rose 0.8 cent Tuesday to $3.511 - -about 92.4 cents US a litre - according to a survey of stations by AAA and the Oil Price Information Service. Prices for diesel - used to transport most food, industrial and commercial goods - also rose overnight to a new record of $4.204 a gallon.

In Canada, the average retail price was just over C$1.23 a litre, according to GasBuddy.com, a website that monitors North American pump prices.

In the United Statresl gas prices are nearly 66 cents higher than last year, when they peaked at a then-record of $3.23 in late May, and have prompted many analysts to raise their estimates of where gas is going to go.

Gas prices are rising for many reasons, including oil's record run. Light, sweet crude for May delivery rose to a new trading record of $119.90 before retreating to settle up $1.89 at a record $119.37 a barrel on the New York Mercantile Exchange.

Many investors see commodities such as oil as a hedge against inflation and a falling dollar. Also, a weaker greenback makes oil cheaper for investors overseas.