FEARS that the UK could see a fresh wave of fuel strikes were mounting last night as oil prices continued to rise.

Prices were edging closer to the record high set in the build-up to the last Gulf War.

A barrel of crude costs $37.40 on London's International Petroleum Exchange.

Motorists are paying more than 80p a litre on the forecourts as a result of the 13-year-high crude oil prices.

Fears that oil installations in the Middle East have become terrorist targets, high demand in the US and production cuts by oil cartel OPEC are driving up the cost.

The recent upsurge in violence in Iraq spread to oil facilities, increasing fears of a disruption to energy supplies from the region.

OPEC is concerned that the soaring prices could slow global growth, but believes the high cost of oil is largely out of its control.

OPEC members will meet in Amsterdam next week to discuss a proposal from Saudi Arabia, the world's largest oil producer, to increase output by 1.5 million barrels a day from the current limit of 23.5 million.

Industry bosses, hauliers, local authorities, security services and government officials were reported to be meeting at the Department of Trade and Industry (DTI) today to plan for potential petrol shortages caused by possible price protests.

But the DTI denied that the emergency talks, said to be hosted by Energy Minister Stephen Timms, were taking place.

One of the ringleaders of the last fuel revolt in 2000, North Wales farmer Brynle Williams, now a Welsh Assembly member, has warned that new protests against rising petrol prices are a "distinct possibility".