High crude oil prices will boost raw material costs in many industries

The surcharge will add 6 Australian dollars (�2.33) to the price of a Virgin Blue ticket and A$10 to seats on sister carrier Pacific Blue.

Rivals British Airways, Qantas and Air New Zealand have taken similar steps during the past days.

Oil prices are near record levels amid fears that demand will outstrip supply.

On tap

Producers' cartel Opec is currently mulling whether to increase output by 1.5 million barrels a day.

However some analysts don't expect that to have a significant effect on the cost of crude oil, which is hovering near a 13-year high in London and a record in New York.

Virgin Blue's chief executive Brett Godfrey said the company is preparing for stubbornly high fuel prices

"While jet fuel prices have seen spikes before we are concerned about what appears to be a sustained price plateau higher than we have experienced since our launch," he explained.

The changes to Virgin Blue's pricing policy will take effect from midnight on 17 May.