Consumers pay dearly for higher oil prices

Oil prices have risen after the US confirmed it was drafting a second UN resolution on Iraq. The move is seen as raising the possibility of military action against Iraq, the world's eighth largest oil exporter.

In the US, crude prices rose 16 cents to $US36.96 dollars a barrel, the highest level since September 2000. In London, benchmark Brent crude oil climbed 63 cents to close at $US32.55.

Meanwhile in Australia, petrol prices in Perth have hit a new high with the average price going up to $1.04 a litre. Two petrol stations are even selling unleaded fuel at $1.08 a litre.

According to FuelWatch, today's price was led by Caltex, which raised unleaded prices on Wednesday to $1.06 a litre in Perth, $1.06 in Sydney and $1.05 in Melbourne.

Australians are not only people paying dearly for fuel with reports emerging from the US that the pump price for regular petrol in the past week increased for the 10th consecutive week.

Americans are now paying $US1.66 for a gallon (about 74.2c a litre).