Fears of civil turbulence in Egypt disturbing shipments through the Suez Canal have pushed Brent crude oil costs to more than US $100 (£62.3) a barrel for the first time since October 2008, driving up fuel prices for motorists as well.
On Monday, the prices of crude oil on the futures market shot up by 63 cents following the record rise of Brent to US $100.05.
Over the past year, the price of oil had risen by over 15%, and analysts predict that costs could soon touch US $110 (£68.5) as a result of the weak dollar and skyrocketing demands.
Gas prices are also expected to rise, with experts predicting a 10% higher day-ahead cost this summer than a year ago.
Emma Pinnock an analyst at Inenco said: "The situation in Egypt has caused the market to worry about the flow of oil in the Middle East."
She added that decisions made by Organisation of Petroleum Exporting Countries (OPEC) in the next few months on how much oil to produce will also have a huge impact on prices.
Last week prices at the pump soared to record highs. The average UK price of diesel hit 133.3p per litre, its highest price since July 2008, while petrol rose to a fresh high of 128.6p per litre.
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