1. Blog
  2. Lpg insider report
  3. WEEK 81: Weekly LPG Insider Report

WEEK 81: Weekly LPG Insider Report

In the immediately preceding week, prices in the foreign market fluctuated but ended up on rising note while domestic prices for LPG initially increased before fluctuating for the rest of the week at a relatively stable range  

By Teslim Waheed

Share On:

WEEK 81: Weekly LPG Insider Report


In the immediately preceding week, prices in the foreign market fluctuated but ended up on rising note while domestic prices for LPG initially increased before fluctuating for the rest of the week at a relatively stable range

  • The international prices of LPG fluctuated throughout the week. but ended at an increasing rate.

  • Depot prices were not stable throughout the week compared to the previous week.

  • Despite a somewhat higher price in foreign markets, the shrinking of price gaps between prices at the depot level and those at the international level has remained consistent.

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

  • Due to transportation costs and proximity to the coast, disparities in LPG retail pricing still exist across the country.

     

     

    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: Over the last 13 months, the rate of inflation has been steadily increasing. However it reached its highest point In March 2021 (18.17%), before it started decreases in the last three months. It fell from 18.12 to 17.93 in May to 17.75% in June 2021. (Fig D). From 12.8 in July 2020, to 13.2 in August 2020. The composite food index reduced from 22.95 in March 2021 to 22.72 in April 2021, 20.57 in January 2021, 19.56 in December 2020, 15.48 percent in July 2020 compared to 15.18 percent in June 2020. The anticipated inflation rate for the month of May is 15.4%. The relax of Covid-19 rule might contribute to the change in the rate of inflation trend.

     

    • Exchange Rate and the LPG: The exchange rate experienced some decreases from N410.20/$1 to 410.17/$1 at the end of the week due to the continued growth of inequalities in the parallel market. The exchange rate is one of the factors that influences LPG prices on the international market. A higher exchange rate would boost the price of LPG on the local market by a considerable amount. This means that the LPG market is in a state of flux, Figure E.

     

    • Crude oil Price and the LPG: The relationship between LPG price and crude oil price remains positive, as a by-product of crude oil. Crude oil prices rose continuously after an initial fall at the beginning of the week. (Figure F). This shows that the price of crude oil has not been stable in the international market. This reflects variability in the market price for LPG.

     

    • Foreign Reserves: As in the previous week, the Nigerian Gross Foreign Reserve showed some level of appreciation from $33.76 billion to $33.59 billion despite increases in the price of oil and fall of the Naira from 410.20/$1 to 410.17$1. Decease in the external reserve is due to the CBN policy

      on measure to stabilize naira rate against dollar.

     

    • 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: Covid-19 causes demand for goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts to the LPG market.
 

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.
 

The prices in the weeks to come may rise due to the effect of increase in the rate of inflation.
 

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