The Automobile Association has warned motorists against panic buying amid fears that petrol prices will rise sharply this week.
Queues formed at some Dublin petrol stations last night after reports that unleaded petrol could reach €1.30 per litre.
However the AA said while the cost of petrol was rising because of numerous factors, including Hurricane Katrina, there was no danger of a shortage.
The association expects prices to rise by 5% at the pumps to an average of €1.13.
The taxi drivers' federation, which recently lobbied for a surcharge on taxi fares, has warned that its members could go out of business in the coming weeks if petrol prices continue to rise.
One leading retailer here was expected to add 10c onto wholesale prices from midnight last night.
It was understood a second supplier would follow suit in the next 48 hours.
US crude oil futures fell $1.90 to $67.57 a barrel on the New York Mercantile Exchange last night. Earlier in the week it traded above $70 a barrel, an all-time record.
