Rising raw material and energy prices driven by the escalating cost of oil have pushed the global supplier of consumer packaging to make the increases.

Chesapeake's president and chief executive Andrew Kohut said: "While we are using our best efforts to mitigate the impact of the rising energy and related costs, it is no longer possible to absorb such rises."

Oil has moved from $50 (£25) a barrel to a record level of $130, which has had a dramatic affect across the packaging industry and has impacted on the cost of packaging conversion.

Chesapeake has also been hit by sharply rising transport costs and key raw materials and supplies.

Kohut said: "We remain committed to meeting our customers' needs, but price increases for our products are essential to allow us to reinvest in the future."