Petrol prices are heading for €1.25 a litre by next month if oil prices continue to rise strongly.
This morning, crude oil prices in London hit a record high of $74.16 - the seventh straight day in which it has set a new price peak.
Paul Harris, head of energy and emissions trading at Bank of Ireland Global Markets, said this morning that data from the United States yesterday showed gasoline stocks had fallen again for the third month in a row prompting supply concerns ahead of the start of the US driving season in May.
"The likelihood of further gains in oil looks strong - technicals point to a swift advance to at least $82.30 in the near term which could push pump prices up to around €1.20 - €1.25 before the end of May."
Mr Harris said the fall in US stocks was bigger than expected and they were now 5 per cent below levels this time last year.
ISME said today it was extremely concerned at the rising level of oil prices and its impact on smaller companies' costs in light of dramatic increases in the price of a barrel of oil in the last few days.
Mark Fielding ISME ceo said businesses have been hit with exorbitant increases in energy costs in the last number of years, with a 51 per cent rise increase in electricity costs, 46 per cent increase in gas and 43 per cent increase in petrol and diesel since 2002.
"While the Government can do little to influence International oil prices, it does have the power to influence the cost of other business inputs including electricity and gas and to implement initiatives to increase the usage of alternative energy sources including bio fuel, solar and wind energy," he said.
Petrol company Esso has already raised prices for its premium unleaded petrol by two cents a litre. The company has 40 sites in the Republic where petrol sells for between 111.9 cents and 114.9 cents a litre.
According to the company, international market prices for petrol jumped by over 30 per cent to more than $160 a tonne.
