WASHINGTON, Sept 8: The US capital has been hit hard by the oil crisis and is selling the most expensive gasoline in the nation, says a survey conducted by the American Automobile Association.

Motorists across America are complaining against an unprecedented increase in oil prices in the international market. The situation in the US has been further aggravated by the damage done to oil storage and refining facilities by Hurricane Katrina. On Wednesday, a gallon of regular gas cost an average of $3.38 in Washington, DC, up 3 cents from Tuesday and higher than any state average calculated by AAA.

New York State followed closely at $3.34, and Maryland was third at $3.26. Virginia was 15th at $3.12 per gallon.

The average in Mississippi, which faced the brunt of Hurricane Katrina, the catalyst for the latest spike in gas prices, was the cheapest at $2.73.

While most state averages include rural areas, where gas is traditionally cheaper, Washington, DC’s average placed second when compared with major metropolitan areas, according to AAA Mid-Atlantic.

The average in Buffalo, New York, was higher at $3.44.

New York City’s average was 6 cents less at $3.32, Baltimore’s average was $3.30 and Los Angeles, home to traditionally high gas prices, was $2.99 yesterday morning. In the Washington area, the average was $3.22, down a penny.

Prices began a slow decline on Wednesday evening, with some local stations reporting a drop on Thursday morning of 5 to 30 cents.

The price of regular fuel dropped 30 cents overnight to $3.29 at a Shell station on Baltimore Avenue in College Park. Gasoline futures dropped again on Wednesday on the New York Mercantile exchange, but they still are up 72 percent from a year ago.

On Friday, Georgia Gov. Sonny Perdue suspended the state’s gasoline tax to relieve some of the pinch. In Washington, members of the local government are also urging Mayor Anthony A. Williams to issue an executive order exempting DC motorists from gasoline taxes.

While soaring oil prices have made life difficult for consumers, they contributed to a sixfold increase in stock prices of Saudi oil products.

A midyear financial report by the Samba Financial Group, one of the largest private banks in Saudi Arabia, said oil revenue this year is expected to reach $157bn, a 48pc increase over 2004’s oil revenue of $106 billion.