Prices remained largely stable in the domestics market and only slightly less stable in the international market for LPG in the immediately preceding week

• • International prices of LPG initially plummeted and then started to rise towards the end of the week under review. Notwithstanding, prices remained largely stable.
• • We find only a slight rise in depot price in response to the rise in prices internationally which only began to be evident towards the end of the week.
• • Prices per kg of LPG at the depots in Nigeria were well over double the prices at the international market.
• • Regional disparities in the retail prices of LPG within the country continue to persist.

   

   

  

   

  

   

  

   

   

  

   

  

  Regional disparity in the prices of LPG across the country has been a regular feature of the Nigerian LPG market. Though the South-south geopolitical zone hosts the great majority of depots in the country due to its proximity to the ocean, prices have been highest in the region.

   

  

  • • • The stability in the exchange value of the naira to the US. $ was reflected in the stability of LPG prices domestically throughout the week (Figure D).
    • • The gross foreign reserves of Nigeria is continuing a downward trend. It dropped by 0.40% through the week.
    • • As noted last wee, the composite Purchasing Managers’ Index (PMI) for the month March 2020 stood at 49.2 points, indicating contraction in Non-manufacturing PMI for the first time after thirty-four consecutive months of expansion.
    • • For the gas market, managers report declining inventory, new orders and employment.
    • • The price Of oil in the international market (Figure E)

       

      

       

      

       

      

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      • • Price of LPG in the domestic market may rise in response to recent rises in international prices.
      • • We expect a continuous stabilization of the exchange value of the naira as market players adjuster to the new rates.