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

 

• International (Mont Belvieu) prices of LPG ended on a slightly higher note in the week under review.
• Prices of LPG at the depot level in the week under review are not too different from what was recorded in the previous week.
• Prices per kg of LPG at the depots in Nigeria are still well above the prices at the international market. Prices per kg of LPG also increased slightly within the week. However, the rise in prices for LPG at the depot level was higher relatively.
• 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 at N380 to US.$1 throughout the week (Figure D).
• Inflation remains high. The persistent rise in inflation in the past nearly 11 months (in June at 12.6% from the 12.4% recorded in May 2020) has implications for the price of LPG across the country.
• The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) maintained its monetary policy rate at 12.50%. The apex regulatory body is adopting a "stand-aloof" approach so as to observe the array of liquidity facilities that have been deployed since the COVID-19 pandemic to cushion Covid-19’s shock.
• Prices of crude oil in the international market in the week under review showed a marked downward trend, after an initial rise (Figure E).

 

• The continuous oversupply situation in the international market for Natural gas will likely lead to a continuous drop in prices in the weeks to come.
• The weeks to come may witness a gradual and slight drop in inflation as the army of liquidity facilities deployed by the CBN start to have a visible impact on economic activities as the country reaches its first month of the re-opened economy.

 

 

 

 

 

 

 

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

 

• International(Mont Belvieu) prices of LPG maintained a generally rise throughout the week under review. This trend is related to the growing oversupply situation in the market as storage capacities approach their peak.

• Prices of LPG at the depot level only rose slightly from what they were the previous week.

• With a general drop in retail price compared to last week, what we see is a general drop in prices across the value chain in the domestic market

• Despite the general drop in prices 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 at N361 to US.$1 throughout the week (Figure D).

  • Like the previous week, the nation's foreign reserve is continuing to experience a drop.

  • For the gas market, though the Purchasing Managers Index(PMI) of the CBN report declining inventory, new orders and employment for the month of June 2020, the decline is lower for the month of June compared to the month of May.

  • The removal of the restriction on inter-state movement due to the COVID-19 led to an initial rise in prices for LPG at the depot level last week. That initial rise is now followed up by a fall in prices in the current week.

  • Prices of crude oil in the international market in the week under review showed a general upward trend, though a decline had commenced from mid-week(Figure E).

   

  

   

  

   

  

• The easing off of the oversupply situation in the international market for Natural gas will likely lead to a rise in prices in the weeks to come.

• the twin effect of a drop in foreign reserve and the recent devaluation could lead to a stabilization of the air at the new rate.

 

 

• International (Mont Belvieu) prices of LPG started on a rising note and subsequently started to experience a drop from mid-week of the week under review.
• Prices of LPG at the depot level are still high relative to prices at the international market.
• Prices per kg of LPG at the depots in Nigeria are still double the prices at the international market. Prices per kg of LPG also increased slightly within the week. However, the rise in prices for LPG at the depot level was higher
• 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 at the new rate of N381 to US.$1 throughout the week. (Figure D). However, the Central Bank of Nigeria (CBN) is yet to formally reflect the new rate in their official website.
• The foreign reserve recorded a slight rise away from the continous drop it has witnessed for more than a month. The slight rise witnessed in the size of Nigeria's foreign reserve has implications for the value of the naira and the price for LPG within the country in the days and weeks to come.
• For the gas market, though the Purchasing Managers Index(PMI) of the CBN report declining inventory, new orders and employment for the month of June 2020, the decline is lower for the month of June compared to the month of May. 
• The removal of restriction on inter-state movement due to the COVID-19 is leading to an initial rise in prices for LPG at the depot level
• Prices of crude oil in the international market in the week under review showed an unstable trend, after an initial rise (Figure E).

 

 

 

Considering the recent devaluation of the naira, the initial rise in prices may continue to the next few weeks until some stability is reached.