AAA's daily survey of fuel prices for Wednesday, July 16, shows a new record level for both gasoline at $4.114 and diesel at $4.839.

The levels represent a jump of 35% over the past twelve months, an increase pressing hard on the budgets of American families and dramatically reducing pleasure travel and daily driving in the U.S.

The pinch is now being felt by business and local governments faced with cutting back services and trimming jobs to meet mounting fuel bills.

Diesel prices have escalated 64% in the last year, a price jump being felt in all levels of the consumer economy from groceries to luxury items, all of which are trucked at some point in their production and delivery cycle.

The most expensive gasoline is currently being pumped in Alaska at $4.634 a gallon followed by California at $4.505. The least expensive gasoline is for sale in South Carolina at $3.912 a gallon on average.

The dramatic climb in prices, which have inched steadily higher through the summer months, has caused consumer preference to switch sharply to smaller, more fuel-efficient compacts and hybrids.

Sales of pick-ups and SUVs have plummeted, leading General Motors to announce a major restructuring including job, production and dividend cuts. Toyota has suspended Tundra production at its San Antonio, Texas facility for three months and all carmakers are scurrying to get smaller cars and alternative fuel vehicles on showroom floors.