By INDERIA SAUNDERS, Guardian Business Desk, Inderia@nasguard.com

An unprecedented spike in oil prices has had the same groundbreaking effect on local gas prices with Shell being the first to write "$5. 24 per gallon" into the record book.

It is an upward trend that Franklyn Wilson, treasurer of Focol - the supplier of Shell gas in The Bahamas - suggests may be here to stay as local conditions further reflect the volatility of the global market. It does not, however, mean his retailers are getting any richer, he hastens to add.

"Some of the best minds in the world, with respect to the economists and forecasters, are all talking about this," Wilson said. "I don't see that it'll go back to $50 a barrel. Everyone is giving the opinion and talking about gas prices getting higher." Yesterday, in fact, a barrel of crude rose above $120. Shell appears to have been the first local supplier to buy gas at those higher prices.

The company, which previously beat out competitors Texaco and Esso for the best gas prices in town at $4.98 a gallon only days ago, was forced to up its prices simply because of the time it purchased oil.

"It depends on when you re-order your supply," he said. "On any given day the price could be higher."

This year's never-ending rise has seen gas prices reach unprecedented level after unprecedented level, prompting consumers to limit their time behind the wheel. The effect of the hikes are not only relegated to the pumps, however, with a growing number of Bahamians reining in on discretionary spending as they struggle to pay for the necessities.

While prices for big ticket items like electronics and furniture grew by 6.6 percent, food and beverages climbed 3.80 percent in March over the same month last year. That same data points to a consumer price index - the best measure of inflation - as the highest in years.

Gasoline prices have played a significant role in that rise, although gas retailers haven't seen their own profits increase.

"This is terrible news for gas retailers as well, they are suffering just as much as (the public is)," Wilson said. "It's a fixed margin as is the distributor [and] the government allows us to only charge a certain amount per gallon, whether it's selling for $2 or $4.

"It drives down working capital and there is no recourse for that."

Shell International is now following the lead of many other oil companies across the globe, searching and exploring alternative fuel sources.

"Public policy is looking in that direction," said the local exec. "Maybe solar energy (or) wind energy."