THE costs of gas and diesel have dropped after a reduction in world oil prices, according to the Ministry of Finance.

The price per litre will fall 4.5 cents to $1.20, and according to the Minister of Finance, the cost of diesel is also being reduced by 0.2 cents a litre, which will retail at $1.01.9 a litre.

Kerosene, however, is going up by 0.4 cents to 82.8 cents a litre.

A spokeswoman for the Government said: "The oil prices have gone down and the change in oil prices reflects the fact that world prices have dropped.'' Recently gas prices have risen pushing the price up to its highest level for several months.

In September motorists paid $1.27.8 a litre, topping the most recent high in June when the price was $1.27.7 a litre.

The increases in September came as motorists around the world protested against rising fuel prices, blockading refineries and bringing many roads to a standstill, particularly in Europe.

Earlier this month, a Canadian newspaper has ranked Hamilton, Bermuda as being the fifth most expensive places to buy gas in the world.

The Financial Post ranked Hong Kong as the most expensive place to buy gas, followed by London, Oslo and Tokyo.

But gas is less expensive in Seoul, Milan, Paris, Stockholm and Amsterdam.

Prices drop But the latest cost of the fuel would take it to second highest if other countries have not also lowered the price of fuel.

The newspaper reported: "For quite some time now, the price of gasoline in Canada has been hovering between 75 and 80 (Canadian Dollar) cents ($0.48 and $0.52 US) a litre. Does that seem exorbitant? Maybe even unfair? "Well, for one thing, it costs more to buy a litre of water off the shelf in most supermarkets. If that still does not help you feel better, here is a list of the Top 10 most expensive cities in the world in which to buy fuel. Think about these the next time you fill up. The per-litre prices have been converted to Canadian dollars.

10. Seoul, $1.53CD (99 cents) 9. Milan, Italy, $1.57CD ($1.02) 8. Paris, $ 1.59CD ($1.03) 7. Stockholm, $1.60CD ($1.04) 6. Amsterdam, $1.60 ($1.04) 5. Bermuda, $1.61CD ($1.05) 4. Tokyo, $1.62CD ($1.05) 3. Oslo, $1.79CD ($1.16) 2. London, $1.80CD ($1.17) 1. Hong Kong, $1.96CD ($1.27)