1. Blog
  2. Lpg insider report
  3. Week 62: LPG Insider Report

Week 62: LPG Insider Report

In the immediately preceding week, prices on domestic markets for LPG were relatively stable while the international market price was on a fallen note.

Share On:

Week 62: LPG Insider Report


In the immediately preceding week, prices on domestic markets for LPG were relatively stable while the international market price was on a fallen note.

  • The international prices of LPG reached its peak in the middle of the week and started falling thereafter.

  • Depot prices were relatively stable from the beginning of the week till the end of the week compared to the previous week.

  • The narrowing disparities between prices at the depot level and those at the international level still prevail.

  • Price changes per kg of LPG in the week under review and in the past few weeks have remained within the limited range.

  • 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. Even though the North Central is far from the coastal region, there is slight difference between the North-central and South-west prices region has the relative highest prices due to distance from the coastal regions.

     

     

    • Inflation Rate and the LPG: There has been a continuous rise in the rate of inflation in the past 13 months. The rate of inflation in November increased from 14.89 to 15.75 in December 2020 (Fig D). From 18.3 in November, 17.38 in October, 16.16 percent in September and 16.0 percent in August, the composite food index rose to 19.56 in December, 15.48 percent in July 2020 compared to 15.18 percent in June 2020. One of the causes of the growing trend is the closure of Nigerian land borders against vital products, the outbreak of the Covid-19 pandemic and the protest against EndSars. This implies that inflation erodes the monetary value of goods and services. The price becomes dearer and this reduces sales of LPG.

     

    • Exchange Rate and the LPG: Exchange rate value from the CBN official site still persistent at N380 to US.$1 throughout the week (Figure E), even as disparities continue to widen in the parallel market. The exchange rate is one of the variables that determine the price of LPG in the international market. A higher exchange rate will add to the cost price of the LPG. This reduces LPG in the market.

     

    • Crude oil Price and the LPG: As a by-product of crude oil, the relationship between the LPG price and crude oil price is positive. The Prices of crude oil in the international market experienced an initial fall at the begining of the week but increased for the rest of the week. (Figure F). This indicates that an increase in the price of crude oil in the international market results to an increase in the cost of LPG. This signal a high price to the LPG market.

     

    • Foreign Reserves: As in the previous week, the Nigerian Gross Foreign Reserve continues to decline, moving from $35.2 billion to $34.90 billion amid the devaluation and pegging of the Naira at N380 to US$1. This will signal to the forex market that further devaluation is inevitable in order to help support the naira.

     

    • PMI: The Purchasing Managers Index (PMI) of the CBN recorded overall growth in jobs, business activities, and inventory in the gas sector in December, while orders remained stagnant in the Electricity, gas, steam & air conditioning supply segment, while Business Activities and employment & inventory remained 45.7 percent in the same month.

     

     

     

     

    Covid-19: Nigeria is currently experiencing the second wave of the Covid-19 pandemic. Federal Schools have not fully resumed while the State universities are taken caution to prevent the spread of the virus. The implications of this on the LPG market is that its volume of sales will not increase in the areas where schools are not yet resumed.

     

    To reduce the effect of the Covid-19 on the economy, there should be a constant awareness programme through the media and places of worship; and also vaccine for Covid-19 should be made available for everybody

     

    The prices in the weeks to come may rise due to the persistent increase in the rate of inflation and rise in the price of crude oil

     

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