Petrol prices have soared to record highs, passing 148p per litre for the first time ever.
Motoring group AA has revealed petrol jumped to 148.02p per litre last week, rising above the previous record high of 147.72p from November last year.
Diesel has also increased to a new record high of 151.57p
Costs at forecourts across the country have risen on the back of rising oil and wholesale gas prices, which have rallied amid rising concerns Russia will invade Ukraine and shorten supplies.
Energy commodities have responded resoundingly to escalating geopolitical tensions, with alarmed investors driving up oil and gas across major benchmarks.
Brent Crude and WTI Crude consolidated last week’s historic rally yesterday, with prices fliriting with seven year highs at $94.67 and 93.60 per barrel respectively.
Analysts are increasingly bullish about the prospect of oil hitting the seismic $100 milestone for the first time since 2014 – with price a mere formality if conflict arises in Ukraine.
Ricardo Evangelista, senior analyst at ActivTrades said: “A Russian move on Ukraine would be likely to push the price of the barrel well above the $100 a barrel mark, as Western sanctions would severely limit Russian oil and gas output, compounding the supply-side issues that have driven global energy prices up.”
Mike Tran, market analyst at RBC Capital considers the market to be fundamentally driven and is even more confident about rising prices this year.
He said: “We see upside visibility for prices to touch or flirt with $115 barrels per day or higher this summer.”
Meanwhile, both UK Natural Gas Futures and Dutch TTF Gas Futures have reported revivals in gas prices after treading water in recent weeks amid boosted liquified natural gas (LNG) supplies from the US, Japan, and Qatar.
UK prices have risen 3.8 per cent, while Dutch prices have soared 4.3 per cent.
With Europe dependent on Russia for around 40 per cent of its gas imports, it is particularly vulnerable to disruption to supplies from the country.
Nord Stream 2 also awaits approval from regulators, which would double Russian exports to Germany if approved.