Prices were became stable in the domestic and international markets for LPG in the immediately preceding week.

 

• The price of LPG in the international market did not experience a major change, and it seems to be stabilising.
• The consistent drop in prices, experienced last month, at the international market seems to have stopped for now, and prices are now stable. However, prices at the depots have, as usual, remained generally stable, as with the previous week.  Both seem to be on the rise.
• Price disparity for 1 kg of LPG between what obtains at the international market level and the depots in Nigeria are generally stable.
• Regional disparities within the country continue to widen.

 

 

Regional disparity in the prices of LPG across the country has been a regular feature of the Nigerian LPG market. This gap has widened this week.. 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.

 

• International prices of crude oil experienced a sudden rise in the middle of the week under review.
• A continuous rise in the price of oil of crude oil may not be unexpected considering fresh moves by the U.S. and Russia to curtail supply glut.  An immediate impact would be the further stability of the devalued naira as revenue rise.
• The consistent drop in the size of the country's foreign reserve and the current official devaluation of the naira is leading to an initial rise in the landing cost of  LPG to Nigeria and subsequent stabilization of prices.
• A further rise in the country's reserve is expected in the coming weeks as the price of Brent crude in the international market continues a drop.

 

• A slight fall in the volume of imported LPG may not be unexpected in the face of higher landing cost of LPG due to the exchange loses.
• The impact of the official devaluation of the naira might become increasingly obvious with a rise in the domestic LPG prices in the weeks to come particularly coupled with the rise in inflation. 
• The current lockdown in the country is creating an early case of demand-pull inflation due to the shortage of supply occasioned by teh lockdown.  We expect this to continue in the coming week.

 

Prices were relatively stable in the domestic and international markets for LPG in the immediately preceding week.

 

·         The price of LPG in the international market did not experience a major change, and it seems to be rising.

·         The drop in prices at the international market seems to have stopped for now with only very minor volatility.  However, prices at the depots have, as usual,  remained generally stable, as with the previous week.  Both seem to be on the rise.

·         The absolute values of the LPG depot prices increased this week due to the devaluation of the naira.

·         Price disparity for 1 kg of LPG between what obtains at the international market level and the depots in Nigeria narrows as prices in the international market.

Regional disparities within the country continue to widen.

 

 

Regional disparity in the prices of LPG across the country has been a regular feature of the Nigerian LPG market.  This gap has widened this week.. 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.

 

• International prices of crude oil continue a downward trend in the week under review.
• The foreign reserves of Nigeria had moved only slightly from US.$35,747,350,970 at the start of the week to US. $35,590,254,308 at the close of the week.  The drop is 0.44% the same as the drop recorded last week.
• The consistent drop in the size of the country's foreign reserve is and the current official devaluation of the naira is leading to an initial rise in the landing cost of  LPG to Nigeria and subsequent stabilization of prices.
• A further drop in the country's reserve is expected in the coming weeks as the price of Brent crude in the international market continues a drop.

 

• With the recent official devaluation of the naira by the CBN, we expect the naira value of the landing price of LPG in Nigeria to stabilize in the coming day and weeks.
• The official devaluation of the naira might signal increases in domestic LPG prices in the weeks to come particularly coupled with the rise in inflation. We expect at least a 3 weeks lag period before the new exchange loss start to be reflected in retail prices.

 

 

 

 

Prices remained largely stable in the domestics and  dropped in the international market for LPG in the immediately preceding week.

 

The fall in LPG prices at the international market continued through this week.

The drop in prices at the international market was greater than what was experienced last week. However, prices at the depots have, once again, remained generally stable, as with the previous week,  suggesting fairly managed inventory risks.

 Again, stability in the 'official'  value of the naira is also contributing to the stability in the domestic price of LPG for the most part of the week under review until Friday when an official devaluation was announced. 

Price disparity for 1 kg of LPG between what obtains at the international market level and the depots in Nigeria widens.

Regional disparities within the country has continued widening.

 

Regional disparity in the prices of LPG across the country has been a regular feature of the Nigerian LPG market.  This gap has widened this week. Though the South-south geopolitical zone hosts the majority of depots in the country due to its proximity to the ocean, prices have been highest in the region.

 

• While we noted last week the increase in activities that the composite Purchasing Managers’ Index (PMI) for the non-manufacturing signals, we note that the report on slowing inventory and new orders in the LPG  market (within the Electricity, gas, steam & air conditioning supply sub-sector) might have been accelerated in the face of global fall in economic activities and the rise in inflation in Nigeria. 
• The foreign reserves of Nigeria continue to decline.  From US.$36,050,032,069 at the start of the week to US. $35,892,334,652 at the close of the week.  The drop is 0.44% from the 0.17% drop recorded last week.
• The drop in the reserve is growing at a higher rate with greater implications for the value of the naira in the days and weeks to come and in turn the landing cost of  LPG to Nigeria. We posit a potential devaluing of the Naira in the coming week.

 

We affirm much of the predictions of the previous week. 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 and a continuous devaluation of the naira in the coming weeks.

A potential continuous drop in the value of the naira might signal increases in domestic LPG prices particular if such devaluation are followed by inflation. We expect a lag in the before this effect fully kicks in.

 

 

Prices remained largely stable in the domestics and international market for LPG in the immediately preceding week.

 

• The fall in LPG prices in the international market continued into the early days of the week but again rose towards the end of the week.
• However, prices at the depots have remained generally stable suggesting fairly managed inventory risks.
• Stability in the 'official' value of the naira is also contributing to the stability in the domestic price of LPG between this week and the previous week.
• Price disparity for 1 kg of LPG between what obtains at the international market level and the depots in Nigeria widens.
• Regional disparities within the country has widened more than what was recorded in the previous week.

 

 

 

 

 

Regional disparity in the prices of LPG across the country has been a regular feature of the Nigerian LPG market.  This gap, witnessed in the past three weeks, remained the same with the previous week.

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 stability in the exchange value of the naira to the US. $ does not reflect the fluctuations in crude oil prices. While we noted last week the increase in activities that the composite Purchasing Managers’ Index (PMI) for the non-manufacturing signals, we note that the report on slowing inventory and new orders in the LPG market (within the Electricity, gas, steam & air conditioning supply sub-sector) might have been accelerated in the face of global fall in economic activities and the rise in inflation in Nigeria. 
• The foreign reserves of Nigeria had moved only slightly from US.$36,181,491,483 at the start of the week to US. $36,138,455,392.13 at the close of the week. This trend continues to reflect early signs of the drop in crude oil prices.  The drop is only 0.17% from the 0.16% drop recorded last 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.

 

 

 

 

• We affirm much of the predictions of the previous week. 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.
• A potential continuous drop in the value of the naira might signal increases in domestic LPG prices particular if such devaluation are followed by inflation.