Ukraine crisis: Crude price may stay around $100 for 3 months, says CAPA

Bad news for airlines as fuel accounts for 40% of expenses. On Tuesday, OMCs hiked ATF price by 8.7% to Rs 93,530.6 a kilolitre. On a year-on-year basis ATF is up by 57%

Crude oil prices may average around $100 for three months due to the ongoing hostilities between Russia and Ukraine, according to a report by aviati­on industry consultancy CAPA.

Meanwhile, Brent crude hit $107/barrel, costliest in eight years. 

This is bad news for airlines in India as fuel accounts for around 40 per cent of their expenses. On Tuesday, state oil marketing companies hiked aviation turbine fuel (ATF) rates by 3.3 per cent to Rs 93,530.6 a kilolitre. On a year-on-year basis, ATF price is up by 57 per cent.

“Based on our assessment, we estimate that during FY23, average Brent crude price will