The Island's car economy has been going into overdrive since the beginning of the year.

Now The Royal Gazette can reveal that gas prices will fall for a fourth consecutive month when official figures are released on Friday.

Cheaper oil prices worldwide are helping pump bigger savings into motorists' pockets.

And Bob Stewart, General Manager of Shell Bermuda, said even the oil companies weren't even losing out because of the cheaper fuel.

He said: "It doesn't really matter from the companies' point of view.

"But the Bermuda customers are benefiting because the movement in international oil prices isn't fixed to the date we bought our oil supplies.

"We have a hedge in place which protects us from movements in international oil prices.

"We buy supplies for roughly six months or thereabouts. If prices go up, we don't benefit. If prices go down, we don't lose out.

"It's good news for the public but it doesn't really concern us.'' Prices for regular gasoline in May had fallen to 115.8 cents a litre, with diesel at 88.5.

A month later, gasoline prices fell again to 115.6 cents and diesel to 87.4.

And in July, one litre of gasoline cost 115 cents, with diesel down to 87.3.

Finance Minister Grant Gibbons told The Royal Gazette yesterday: "This trend is very good news for the customer.

"To some degree, the cost of fuel depends on the price the companies are charged for their supplies from the Caribbean.

"And as for August figures, we expect to see a further decline in the cost of both gasoline and diesel.'' Statistics released by the Ministry of Finance last month showed motor vehicle and service station sales jumped by a massive 14.7 percent, year on year.

Mike Cordeiro, sales associate at Continental Motors in Pembroke, said: "We've had a tremendous increase in car sales.

"We've already shifted about 100 vehicles so far this year. Last year, we only sold about 80 in total, so already we're well ahead.

"There are about 23,000 cars registered on the Island and the average car on the road is about 10 years old.

"It's going to take another 10 years to replace those 10-year-old cars and that seems to be an on-going cycle.

"But perhaps, right now, Bermudians are getting fed up with their older vehicles.''