"Prices have shown a slight rise in the international and domestic markets for LPG in the immediately preceding week "

• International prices of LPG started with an initial drop and later continued on a rising note for the rest of the week under review.
• 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 about three weeks, the foreign reserve has experienced a drop in the week under review.
• 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.
• For the gas market, managers report declining inventory, new orders and employment.
• The recently announced 1.8% growth rate for Q1 2020 will boost, at least, temporarily, the confidence of investors and market players of the viability of the Nigerian market.
• Fluctuations in the prices of crude oil in the international market were not very severe in the week under review. (Figure E)

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.