"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 started on a rising note in the week under review. The rise continued until the end of the week.
• • We find only a slight rise in depot price in response to the rise in prices internationally.
• • Prices per kg of LPG at the depots in Nigeria are well over double the prices at the international market.
• • Regional disparities in the retail prices of LPG within the country continue to persist.

   

• 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 0.51% through the week.
• The drop in the reserve has implications for the value of the naira in the days and weeks to come and in turn the landing cost of LPG to Nigeria.
• 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 sharp drop in the price of oil in the international market is due to the coronavirus pandemic as well as the dwindling global economic activities (Figure E)            
  • Price stability will be slightly upset as the gains from the slight drop in LPG prices internationally might be significantly offset by the rising inflation levels occasioned by the extended lock-down period.
  • A potential continuous drop in the value of the naira might signal increases in domestic LPG prices particular if oil prices in the international market continue to drop.