Soaring petrol price a threat to Gore
By Philip Delves Broughton in New York

FAST-RISING petrol prices in America are provoking demonstrations from New York to California and are threatening the economic boom, which Vice-President Al Gore is hoping to ride to the White House.

 Europeans, who are used to heavy taxes on petrol, may find it hard to sympathise, but Americans may soon have to pay £1.23 per gallon of petrol.

 Given the vast distances Americans drive, even when commuting or going out to dinner, and their love of petrol-guzzling cars, they end up spending around the same on petrol as European drivers. On Sunday, New York's Mayor, Rudolph Giuliani, called on the Clinton administration to take some action to cut prices.

 The unprecedented cost of petrol is the result of measures taken over the past two years by the Opec members to cut back on oil production in a successful effort to raise the price per barrel. Last week, oil prices reached their highest point for nine years.

 George W Bush, the likely Republican presidential contender, is expected to make the issue a major campaign theme. As Governor of Texas, he represents a state where oil production has slumped in recent years as the United States has become increasingly dependent on cheaper imports from abroad.

 High petrol prices, like airline strikes, are among the phenomena most feared by American politicians, as they have a swift and immediate effect on the voter.

 The US Energy Secretary, Bill Richardson, has been engaged in frantic efforts to persuade the Opec members in the Middle East to increase oil production to help bring down petrol costs in America.

 According to a report by the Energy Department, his efforts have come too late to stop petrol prices rising towards the psychologically crucial two-dollar mark.

 "Prices are poised to surge to unprecedented levels before the spring is out," said the report.