1. Blog
  2. Lpg insider report
  3. Week 63: LPG Insider Report

Week 63: LPG Insider Report

In the immediately preceding week, prices in the foreign market and domestic markets for LPG were relatively stable

Share On:

Week 63: LPG Insider Report


In the immediately preceding week, prices in the foreign market and domestic markets for LPG were relatively stable
 

  • The international prices of LPG was on a risen note after an initial fall in the beginning of the week.

  • Depot prices fluctuated with a slight increase at the end of the week compared to the previous week.

  • The narrowing of price disparities between prices at the depot level and those at the international level has remained narrowed, despite relative fluctuation in both markets.

  • In the week under review, the price increased per kg of LPG and has been within the specific ranges with an increasing rate in the last few weeks.

  • Disparities in LPG retail prices throughout the country still persist due to transportation cost.

     

     

     

    A daily feature of the Nigerian LPG market was regional variance in LPG prices across the country. Because of the distance from coastal areas the South-East region has the highest price.

     

    • Inflation Rate and the LPG: In the last 11 months, inflation has been steadily rising (Fig D). The rate of inflation in November increased from 14.89 to 15.75 in December 2020 (Fig D). The composite food index inclined to 19.56 in December from 18.3 in November and 17.38 in October, 16.16 percent in September and 16.0 percent in August, 15.48 percent in July 2020 compared to 15.18 percent in June 2020. This is caused by the lasting effect of the closure of Nigerian land borders against vital products, the outbreak of the Covid-19 pandemic and the kidnapping and killing of farmers in the agrarian part of the country. The expected rate of inflation in January 2021 is 14.96%. Goods and services are now competing against fixed, and even declining, revenue from consumers. The LPG market declined as a result.

     

    • Exchange Rate and the LPG: Due to the continued development of disparities in the parallel market, the exchange value continued at N380 to US $1 throughout the whole week (figure E). The exchange rate is one of the variables which in the international market determines the prices of LPG. A higher exchange rate would add a significant amount to the purchase price of the LPG on the local market. This implies that the LPG market contracts.

     

    • Crude oil Price and the LPG: The correlation between LPG price and crude oil price remains positive, as a by-product of crude oil. Crude oil prices reached its apex towards the end of the week but ended on fallen note in international market (Figure F). This shows that the price of crude oil has not been stable in the international market and that the price of LPG fluctuated. This reflects variability in the market price for LPG

     

    • Foreign Reserves: As in the previous week, despite Naira devaluation and the pegged exchange rate at N380 to US$ 1, the Nigerian Foreign Reserve decrease further from $34.90 billion to $34.66 billion in the week under review despite the devaluation and pegging of the Naira at N380 to US$ 1. This might be due to instability in the price of oil.

     

    • PMI: The CBN Purchasing Managers Index (PMI) recorded overall growth in employment, business and inventory in the month of December while ordering in the category of supply for power, gas, steam and air conditioning remained stagnant while business operation & inventory were static in the same month at 45.7 per cent.

       

       

       

      Covid-19: Nigerians are still seen observing caution not to spread the virus in its second wave period even though there is no lockdown measure applied in the country at present. Economic activities are normal and social distance is maintained. Covid-19 causes demand of goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts the LPG market

      Covid-19 Vaccine arrived in Nigeria: Nigerian President Muhammad Buhari on Saturday urged all "eligible Nigerians" to be vaccinated against coronavirus as soon as possible using the AstraZeneca COVID-19 vaccine, manufactured by the Serum Institute of India and provided through the global COVAX initiative. The implication of this is that people will be confident health-wise and this will lead to free flow of activities in the economy without full or partial lockdown.

       

      • Reducing the effect of the Covid-19, entails more campaign and public awareness of the virus as people are easily carried away and relaxing. Vaccines for Covid-19 should be distributed without much delay if available.

      • Nigerians are advised to take the AstraZeneca COVID-19 vaccine, manufactured by the Serum Institute of India to be immune against the virus.

         

        The Nigerian LPG Market is the next success story of the Global LPG industry, if you need a partner with a global perspective and local expertise in the Nigerian and African space, kindly book for a free session with our team of experts to help you http://www.kiakiagas.com/book-session or write us an email at advisory@kiakiagas.com or Whatsapp: +2348085269328

 

Related Posts

Social Impact

How LPG is contributing to the growth of SMEs in Africas: Your One Stop LPG Provider

A crucial component of human life is energy. Reliable access to modern, reasonably priced energy is essential for a country's social and economic development. Traditional dirty-burning fuels used for cooking, such as coal, wood, and kerosene, produce large amounts of pollutants and carbon monoxide, which are the main contributors to indoor air pollution and its negative health impacts. Continual use of unclean fuels may result in early deaths, an increase in childhood and adult illnesses, associated environmental problems, and stress on the healthcare system, according to experts. Liquefied petroleum gas (LPG) was found in the search for cooking energy that would protect our environment from pollution. LPG is a type of energy that is used in cooking. It is produced by refining raw natural gas or crude oil that comes only from fossil fuel sources. It is kept and moved in LPG cylinders at a reasonable amount of pressure as a liquid. Propane and butane make up the majority of the gases created during the LPG production process. The first online energy company in Nigeria, Kiakiagas, provides excellent, prompt, and safe delivery of liquefied petroleum gas (LPG) and related products to Nigerian households and businesses. The company has developed into an energy solutions provider, paving the way for a future in which gas will drive the switchover of the African energy sector from fossil fuels to renewable sources, bringing electricity to consumers in the last mile from urban to off-grid areas.
November 24, 2022
Social Impact

HOW YOU CAN CONSERVE YOUR COOKING GAS AND MAKE IT LAST LONGER

Liquefied Petroleum Gas (LPG) is widely used for cooking around the world, but to a lesser level in most underdeveloped countries. LPG is a nonrenewable source of energy. However, when compared to cooking with hardwood or charcoal, it is commonly known that using LPG has few recorded negative health impacts. One of the main drivers of deforestation in Sub-Saharan Africa is the demand for firewood and charcoal as a source of cooking energy. Increasing the usage of LPG is one of the options for reducing the strain on forest resources. Cooking with biomass produces both greenhouse gas emissions and indoor pollution from black carbon. Kiakiagas has endeavor to reach different classes of people and orientate them on the benefit of LPG to their health. We also give information about how LPG is a more cost-effective, faster, and environmentally friendly cooking method than conventional methods. Following the increase in gas prices, many individuals were seeking for strategies to extend the life of their cooking gas. It's possible and easy to extend the life of your gas. Utilizing these suggestions will help you save a lot of money. Here, we come with a list on how you can conserve your cooking gas and make it last longer:
November 17, 2022
Social Impact

EFFECTIVE TIPS ON HOW TO SAVE YOUR COOKING GAS

It is well known that the cost of food has climbed significantly in recent months along with the price of cooking gas, making life difficult for a large number of people. For the typical Nigerian household, cooking gas has turned into a luxury good. Bravo if you still have the means to fill yours to the brim! You don't come across people who can easily and comfortably fill up their gas cylinders every day. Every residence is frantically looking for ways to adapt to this change and extend the gas supply. On a more positive side, we have developed useful advice that will lessen how frequently you visit the petrol station. We have heard the word "savings" so frequently that we are accustomed to it. Many things can be saved, but we have no idea how to do it with LPG. Everyone encounters this question on a daily basis. Is there a way to conserve LPG for cooking? There is, and it's not particularly complicated. Your cooking style only needs a few little tweaks here and there to work. To learn some crucial advice on how to conserve household LPG, scroll down.
October 26, 2022