"Prices remained slightly 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 but ended nearly at the price it was in at the beginning 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 still 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 exchange value of the naira to the US. $ was remained stable throughout the week (Figure D).
  • • for the first time in weeks the gross foreign reserves of Nigeria is experiencing an upward trend. It rose by 1.43% through the week.
  • • The rise 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 rise in the price of oil in the international market is due to the wearing out of the impact of the coronavirus pandemic on the global economic activities (Figure E)

     

   

   

  

   

  

   

  

  • • Price stability will remain firmed up as Nigeria's reserve continues to steadily rise.
  • • A potential continuous stabilization in the value of the naira might signal stability in domestic LPG prices particularly if oil prices in the international market continue to drop.

     

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