Irish consumers could be facing an increase of 50 per cent in their electricity bills this year.
The news comes after fuel prices reached record highs on Monday.
The price of gas hit £8 a unit in London on Monday, which is almost twice the cost that led Irish electricity to rise last year.
The possibility of Europe and the US imposing further sanctions on Russia for its invasion of Ukraine has also sent world markets into panic, leading to the surge in oil and gas prices continuing.
Industry figures have predicted that Irish electricity prices will rise "40 to 50 per cent", while gas customers could see their bills double.
European currencies are now crumbling due to the war, with the euro falling below the haven Swiss franc for the first time since January 2015, on Monday.
While Russia faces many sanctions designed to decrease funding of its 'war machine' and isolate its economy, the sanctions have excluded its gas and oil exports.
Many retailers have now pulled out of Russia with videos emerging of shopping centres with shutters pulled.
Despite these steps, Europe is still dependent on Russian gas and oil supplies to power its economy.
However, excluding fuel from the sanctions has led to many people questioning the relevancy of sanctions. It is estimated that the west pays around €700m a day to Russia for their energy supplies.
To combat the impact of rising costs on Irish consumers, Tánaiste Leo Varadkar said the Government is considering reducing excise duties on fuel and energy supplies following the effects of the Ukrainian invasion as more than a third of the average cost of a litre of petrol goes on excise duties.
The global benchmark of Brent crude has shot up since Friday hitting €127.94 a barrel at the start of trading on Monday, a leap of almost €20 on Friday's close of €108.54.
The all-time high of Brent crude of €135.64 was reached in July 2008, but some experts have predicted this mark could be surpassed due to the impact of the Ukraine crisis.
The instability of the market had led to safe havens such as gold increasing in value.
