MOTORISTS were bracing themselves for further increases in fuel costs last night after crude oil prices went above $50 a barrel for the first time.

The latest increase in New York left industry experts contemplating another one or two pence on a litre of petrol, which currently averages 82p.

Political unrest in Nigeria's oil producing region, continued instability in the Middle East and the impact of hurricane Ivan on the oil-rich Gulf of Mexico have increased supply concerns, pushing prices steadily higher during the past week.

The cost of crude peaked at $50.47 a barrel, prompting a move by Saudi Arabia to pledge to increase production from 9.5 million barrels a day to 11 million.

The Petrol Retailers Association said it expected one or two pence a litre extra on unleaded petrol, particularly as weather conditions in the US had led to higher production costs. Among forecourt companies, BP said it was continuing to monitor the situation.

Diesel customers are expected to be hardest hit by the latest crude oil increase as demand for the product increases in the run-up to winter.

Any increase in the cost of unleaded petrol is likely to take prices close to the 85p a litre levels seen at the time of pump protests in 2000.

Despite the highest crude prices in 21 years, analysts said the cost of oil needed to rise much more before it had a major impact on the global economy.

The cost of Brent crude reached $46.80 a barrel earlier in the day.