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.

By utilizing e-commerce as a platform to conveniently buy cooking gas and related products and deliver them to every household and business in Africa, LPG is achieving the new Sustainable Development Goals through the use of information and communication technologies (ICT). This is done while also paving the way for payment options, including cash on delivery, point of sale, and credit card payments.

By offering convenient booking platforms, first-rate customer service, the use of technology to ensure precise quantity filling, safety and quality assurance of cylinders and accessories, as well as quick delivery service, LPG has been able to transform the SMEs idea of purchasing cooking gas online into a mainstream culture in Africa. As a result, a greater proportion of Nigerian homemakers and industries are requesting that the company expand.

With the contribution of the LPG, many small and medium size companies have ventured into cylinder distributors. Gas and cylinders are provided to the secondary distributors by the prime distributors (filling plants). The secondary distributors sell products straight to end consumers after filling 1,000 or more cylinders. In Nigeria, there is a brand-new class of secondary distributors (these people belong to the second category) who have their own filling plants, which are small units with storage capacities of 1 to 5 MT and are commonly situated in gas stations. Therefore, they typically use bobtail trucks to purchase 1 to 2 MT in bulk from primary distributors (the filling facilities) and then fuel end customers at gas stations.

Use of LPG fosters and facilitates inclusive economic growth at the local and national levels, empowering a variety of large and small companies and economic sectors. A multinational LPG transition program in Africa caused a sharp rise in the number of homes utilizing LPG for cooking.

As a portable, adaptable fuel with uses in both small craft industries and major industrial settings, LPG fosters industry entrepreneurship and supports numerous jobs. LPG can be used efficiently even in very rural and remote regions because it can be transported over long distances and doesn't require pipelines. According to the WLPGA, 80% of farmers utilize LPG for a variety of purposes in the agricultural sector. In extremely rural areas, LPG serves to support employment options that might otherwise be scarce.

In order to determine How LPG is contributing to the growth of SMEs in Africas The Kiakiagas Nigeria Limited, which has a solid reputation for establishing gas plants for the SMEs that include not only LPG but also CNG/LNG, auto gas, oxygen plants, and shipping, is the proper and finest option to consider. Our crew is up to the task, and we follow the DPR's instructions by using imported goods. Our staff has undergone extensive training to ensure that installations are carried out using the most up-to-date technology. We can also assist you in obtaining the appropriate permissions and ensuring that all gas pumps and dispensing systems are approved and tested extensively. KIAKIAGAS is a one-stop-shop for all things gas, from pipeline to pump. As an added bonus for convenience stores, KIAKIAGAS carries leading gas pump and dispense equipment manufacturers such as Casper.

 

KiakiaGas Limited is a leading Gas business in Lagos, Nigeria with expertise in LPG retailing, New Gas Market development, Building of Gas Plants and Gas strategy advisory. Supply by KiakiaGas provides LPG products and equipment for corporate and institutional clients for the project and operational needs. If you need a partner with hands-on local expertise in the Nigerian Gas space or any of our bespoke solutions/services, kindly visit www.kiakiagas.com to learn more.

 

 

 

 

 

 

 

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.

A typical LPG cooking system consists of an LPG-filled steel cylinder, a pressure controller, a tube connecting the cylinder to the pressure controller and the burner, and the burner itself. You could be willing to go days without a phone or internet connection. Mobile phones and internet cafés more than compensate, but not being able to prepare a meal for yourself (and your family) feels like a major financial drain, not to mention unhealthy. LPG is preferred by Africans because it is clean, simple to use, rapid, and cost-effective. Individuals can get LPG at subsidised prices from the government. LPG is simple to use, with on/off activation as soon as you rotate the knob. Cooking with fake LPG equipment may not only irritate you but also cause a waste of gas. What's more!! Untimely gas equipment replacement can be inconvenient and even turn you off to the gas equipment. This is true if you have not yet had the opportunity to purchase gas LPG equipment from Kiakiagas, an LPG and gas equipment firm linked with international gas equipment manufacturers. Casper is one of the linked American companies. Kiakiagas also offers better advice on how to control your gas equipment when you cook as you can regulate the flames as per requirements. With Kiakiagas, yes, the intensity of flame is totally in your hands and it is noticeable in the form of cerulean flames. Kiakiagas LPG equipment can cook quicker than any other available alternatives as it has huge calorific value.

 

 

 

Cooking with LPG is not a hot and humid experience, as stoves produce far less heat than other cooking gases; as a result, we recommend not overheating your kitchen. LPG emits the least amount of greenhouse gases of any existing fossil fuel. It has significantly less nitrogen, sulphur, and other particle chemicals that are harmful to the environment. Because an LPG cylinder doesn't take up much space in the kitchen, it's easy to keep one on hand. It's not like traditional cooking techniques such as wood, charcoal, or kerosene oil, which produce dense puffs of smoke, soot, and residue.

The usable energy value of one kilogramme of LPG is 20.7 MJ/kg. Air-dried firewood has an energy level of roughly 16 MJ/kg, while charcoal has a content of 27 - 33 MJ/kg. To supply the same amount of useable cooking energy as 1 kg of LPG, between 7.3 and 29.7kg of woodfuel would be required, depending on the type of woodfuel, charcoal generation, and cook stove. Because LPG is heavier than air (for example, propane is 1.5 times heavier than air), it can accumulate above ground. This could result in LPG 'lakes,' which could produce explosions. To aid detect leaks and so limit the risk of explosion, a foul-smelling odorant is added.

 

EFFECTIVE TIPS ON HOW TO SAVE YOUR COOKING GAS

There are a few things you can do to extend the life of your cooking gas given the current rise in gas prices. By carrying them out, you will finally reduce your monthly gas costs and generate significant savings. Below are the effective tips on how to save your cooking gas:

Prior to cooking, have all of your items ready to go. Before you turn on the stove, make sure everything is chopped, skinned, thawed, seasoned, marinated, and basted. In this manner, you can finish preparing the various parts of your dinner without consuming any gas. Particularly large drains can result from boiling water. Before adding anything to their boiling water, many people frequently wait an excessively long time.

Turn down the heat as much as you can. When they need to heat anything up, some cooks have a nasty tendency of turning the burner all the way up. Instead, make an effort to just use as much heat as is required to fully reheat or cook your food. When cooking gas is burned, a flame is created, and the flame generates heat energy. The heat generated by the flame increases as more gas is burned, and vice versa. A cooking pot's temperature rises as a result of its contents absorbing the heat, which cooks the meal. The speed of cooking increases with the temperature in a cooking pot. It is important to keep in mind that once a liquid in a cooking pot reaches its boiling point, additional heating and gas combustion will not raise the temperature of the contents of the pot or cause the contents to cook more quickly until all the liquid has evaporated. Therefore, the key is to keep the heat at the lowest level necessary to keep the water boiling. Anything above the bare minimum needed temperature will be useless. For instance, water boils at 212 °F (100 °C). The cooktop won't get any hotter once it reaches boiling if you keep it running at full blast; instead, you'll burn up more gas. Always adhere to the directions to the letter while preparing food from a recipe. Most recipes state how much heat to use.

A complete flame-covering pot or pan should be used.  It indicates an overheated stove if you can see the flames licking the pan's sides. Some gas cookers contain many burners of various diameters for a reason. Use the largest burner when cooking with a large pot, and the smallest burner when cooking with a tiny pot. In this manner, the amount of gas burned will match the burner's size. The use of tiny pots on a large burner is a waste of cooking gas. Once the flames are contained to the pan's bottom surface, reduce the temperature. Otherwise, their heat will radiate outside the container. Use only flat-bottomed cookware for the best results. With these components, the entire heating surface will always be in close proximity to the flames. Choose a burner that is smaller than the pot or pan you are using if your stove has many burners of various sizes to make sure it isn't emitting too much heat.

To make sure your stove's burners are operating correctly, keep them clean. Make sure your burners are off and cool to the touch before cleaning them. After that, take off the safety grates and use a moist paper towel to clear any remaining residue. Finally, use soapy water to thoroughly scrub the area surrounding the burners to remove all residue. Your gas stove's flames should have a vivid blue color as they burn. Flames that are yellow or orange may indicate incomplete combustion, which indicates that the gas in the lines isn't being utilized to its fullest extent. If cleaning the burners doesn't fix the issue we, at Kiakiagas, are at your service just give us a call to come take a look at it and replace it if necessary.

Look for any possible leaks. Pay particular attention to any odd odors or light hissing noises coming from the area near your stove. These signs of a leak may be present. Even while you are not cooking, you will be losing gas if your stove has a damaged gas line. The simplest approach to check for a leak on your own is to pull out the stove sufficiently to reach the gas line, then use a cotton swab to clean the fittings with soapy water. A leak has been discovered if one of them starts to bubble. Leaks should be repaired right away because they might seriously jeopardize public safety. Regularly inspect and service the regulator as well as check the pipes or hoses for blockages and leaks to ensure safety and maximize your cooking gas. Always make sure to turn off the regulator after cooking to prevent waste.

Purchase dependable cookware. Due to their high conductivity, materials like copper, stainless steel, and are able to heat up more quickly and disperse heat more uniformly. Similar to cast iron, ceramic cookware does an excellent job of holding heat for a longer period of time, so you won't need to keep the stove on to simmer sauces or keep prepared meals warm. Cookware made of stainless steel or ceramic is typically more expensive, but when you factor in how much money you'll save each month, it virtually pays for itself. In contrast to conventional cooking pots, which only heat food to about 100 degrees Celsius, pressure cookers heat food to about 125 degrees Celsius, which helps the food cook more quickly and cut down on cooking time and gas usage.

Keep your cooking utensils in good shape. Take care when handling your pots and pans to avoid dings, dents, and scratches. While rough surfaces struggle to absorb heat and may even reject it, smooth surfaces do so with ease. Working with battered cookware also carries the risk that over time, chemical seasoning ingredients may start to flake off and enter your meal, introducing potentially dangerous substances. In nonstick pans, always use plastic utensils, and make careful to clean them with soft sponges as opposed to steel wool or other abrasives. While cooking, covering the pan prevents steam from escaping and speeds up the cooking process. Additionally, because the heat energy is utilized more effectively, cooking time is decreased.

When you can, cover your pots and pans. Open cookware allows for the rapid loss of heat. By capturing that heat, you may drastically reduce the amount of time you spend cooking while also preventing the kitchen from turning uncomfortable hot as you prepare dinner. Remember that vapor contains heat as well. You definitely used too much water in the beginning if your cuisine requires letting merely to reach the proper consistency. Additionally, foods are less prone to become overly dry when covered while simmering.

Do not overcook your food. When a dish or ingredient is done cooking, switch off the heat source and place the item aside to cool. This is based on a straightforward principle: the longer the food stays on the stove, the more gas you'll need. Set a timer and watch your meal carefully as it cooks so you can turn off the heat as soon as it's finished. More practical alternatives to using the stove to keep food warm include transferring it to a cooking bag or just covering it with a lid.

 

Now that you've effectively learned how to save your cooking gas in everyday life, consider making it a practical habit whenever you wan to use LPG. Don’t forget to purchase your LPG from a reputable supplier like Kiakiagas Nigeria Limited to receive the most cost savings.

 

KiakiaGas Limited is a leading Gas business in Lagos, Nigeria with expertise in carrying out feasibility study/Business plan on all forms of gas, including oxygen and other non-natural gas and LPG retailing, New Gas Market development, Building of Gas Plants and Gas strategy advisory. Supply by KiakiaGas provides LPG and Non LPG Gasses products and equipment for corporate and institutional clients for the project and operational needs. If you need a partner with hands-on local expertise in the Nigerian Gas space or any of our bespoke solutions/services, kindly mail hello@kiakiagas.com  to learn more.to learn more.

 

Launched in August 2015 Kiakia Gas Limited (RC:1226776) is a registered Liability company in Nigeria as a last mile LPG delivery service using technology to deliver LPG (cooking gas) to households in Nigeria, we have expanded our scope to include consulting & Analytics, smart-engineering & manufacturing and B2B bulk distribution. The importance of technology and governance policy in accelerating sustainable transitions cannot be overstated.

Renewable and low-carbon energy sources are part of the policy mix. Because the ongoing energy transition necessitates the construction of new infrastructure or the modification of existing infrastructure, the business model is crucial. Our model for determining the locational efficiency of gas plant set-up and distribution of LPG across the country is providing immerse leverage in this regard. Market Demand Modelling and Valuation We are the only end-to-end LPG Company that has been building capacity internally for the modelling and measurement of demand for LPG as well as understanding consumer behaviour across cities and on the national level in Nigeria. This modelling and valuation efforts are helping us define how to approach various market segments and market entry strategies. Our market analytics and intelligence for the LPG and energy market of Nigeria is opening new opportunities for the company, and for overall market development

Online Energy Outfit

Kiakiagas is the Nigeria’s first online energy outfit offering outstanding, quick & safe delivery of liquefied petroleum gas (LPG) and its related products to Nigerian homes and industries. The company has evolved into an energy solutions company creating a future in which gas will lead the transition of the African energy space from traditional forms of energy to renewable forms of energy making energy available to the last mile consumers from urban areas to off-grid areas.

Use of Information and Communication Technologies (ICT) as an essential tool for achieving the new Sustainable Development Goals by leveraging on ecommerce as a platform to buy cooking gas and related products to the door step of every Nigerian household and industry in a convenient manner, while also providing multiple payment options such as cash on delivery, POS, and payment by credit card. Like all other eCommerce platforms, users simply book for cooking gases by visiting the website and logging in, choosing a cylinder that suits their need, selecting a payment method, and then waiting for their items to be delivered at their doorstep. The platform also offer free delivery of cooking gas to every home within 45minutes.

Kiakia Gas has managed to turn the idea of buying cooking gas online in Nigeria into a mainstream culture by providing convenient booking platforms, excellent customer service, and the use of technology to ensure accurate quantity filling, safety and quality assurance of cylinders and accessories, as well as quick delivery service, resulting in a higher percentage of Nigerian homemakers and industries calling for the company to expand.

Cylinder Manufacturing

Early in 2021, as part of our strategic plan to expand the downstream LPG market, we started building the biggest cylinder production facility in Nigeria. This is our plan for easing the switch to LPG for 100,000 non-LPG users in Nigeria over the next five years.

 

Coastal Storage and Ship Loading/Offloading Infrastructure

By building a 13,00MT LPG coastal storage and ship loading/offloading infrastructure for Nigerian & West African markets, we intend to enhance our development of the gas market and value chain in Nigeria and West Africa. The Terminal is also planned to include a scalable Thermal IP, a 500MW power plant that will use local LPG production as a backup fuel source in addition to the plentiful natural gas supplies that surround the project location. LPG Industry Technology

Kiakiagas, which garnered more funding to help her realize her bold vision of becoming Nigeria's and Sub-Saharan Africa's leading cooking gas brand, was also recognized as a First of its Kind in the Ecommerce and Natural Gas Industries, respectively, by receiving an award at the FIRST OF ITS KIND AWARDS organized by TFK media Limited, continues to set the standard for other cooking gas dealers to follow.

Over a period of seven years, Kiakia gas has been able to distribute 300,000 metric tonnes (mt) of LPG nationwide at affordable price. The company has developed not only LPG feasibility study but also installation of LPG plants for over fifty companies in Nigeria. The company deals in LPG engineering, data report, consulting and offer courses relating to learning materials to improve knowledge on areas related to gas and engineering. The company procured best LPG plant products with higher quality from USA, Germany and UK.

The MISSION of the company is simple: To use gas to bridge the energy access between traditional forms of energy and renewable forms of energy.

The company has consistently planned, strategized, trained, researched and attended international and national conferences (see plate 2 &3 below) with the sole purpose of actualizing its mission of bridging the energy access between the conventional forms of energy and renewable forms of energy.

Kiakiagas developed a telemetry GSM tracking of gas usage based system which tracks consumers usage of gas, detects leakage and automatically orders .This device sends a high priority message to the customer and to us as a company to give notification of a leakage”.This is new, and high laudable. With millions of Nigerian homes depending on cooking gases, KiaKia gas has a chance to dominate in this uncharted space.

Most industrialized countries have built legal structures to strengthen the use of clean energy sources in accordance with sustainable development goals to ensure that the environment is protected from the use of filthy energy. The pursuit of sustainable energy and advancement of LPG development is central to the Kiakia gas not only in Nigeria but also in Africa. This explained the presence of the company experts in Germany for the production of LPG SMART METER to facilitate the consumption of LPG in African communities.

Smart meter has the potential to help businesses and communities in Nigeria and African to harmonize their pressing health, climate, clean cooking, and environmental goals, as they can now consume LPG as low as they want. This bridges the gap of inability of the low income households to use LPG due to high price per kilogram. It reduces distribution costs as several households can consume LPG from a large gas cylinder. Businesses that are concentrated in an industrial area will as well benefit from a large gas tank with the aid of smart meter. The result is increased LPG access, as well as less accumulation of gas cylinder in African communities and business environment.

We are aware that using technology to enable us to reach the one million households will be necessary. As a result, we are developing technologies leveraging Internet of Things (IoT) solutions that make it simple to order LPG through established retail operators in close proximity to the homes from anywhere in the country. Additionally, this technological solution would make it possible to provide real-time data on LPG consumption in homes.

You can also advance your company level by engaging your customers through a well-planned internet of things (IoTs) with the use of latest information and communication technology. Either you are coming into the LPG industry as a fresher or you are an existing company that aims to expand LPG business, we are ready to provide you with feasibility study that can lead you straight to LPG business success.

A feasibility study examines all of your project's pertinent aspects, including economic, technical, legal, and scheduling issues, to determine the project's chances of success. Several elements influence whether your project is practical, including the project's cost and return on investment, or whether the initiative earned sufficient money or sales from consumers. A feasibility study, on the other hand, isn't just for projects that want to measure and estimate financial gains. In other words, depending on the industry and the project's purpose, practicality can mean different things. A feasibility study, for example, could determine if a liquefied petroleum gas plant can generate enough funds through cooking gas sales and sales of gas equipment to increase the return on investment (ROI). A feasibility study determines if a proposal or project is feasible. A feasibility study examines a project's viability to see if it has a chance of succeeding. The research will also look for any challenges and problems that may occur as a result of the project's implementation.

In order to determine how and where a cooking gas plant should be built, the DPR, as the federal government's regulatory authority, must be consulted, as well as an expert in the subject. The Kiakiagas Nigeria Limited, which has a solid reputation for establishing gas plants that include not only LPG but also CNG/LNG, auto gas, oxygen plants, and shipping, is the proper and finest option to consider. Our crew is up to the task, and we follow the DPR's instructions by using imported goods. Our staff has undergone extensive training to ensure that installations are carried out using the most up-to-date technology. We can also assist you in obtaining the appropriate permissions and ensuring that all gas pumps and dispensing systems are approved and tested extensively. KIAKIAGAS is a one-stop-shop for all things gas, from pipeline to pump. As an added bonus for convenience stores, KIAKIAGAS carries leading gas pump and dispense equipment manufacturers such as Casper.

 

KiakiaGas Limited is a leading Gas business in Lagos, Nigeria with expertise in LPG retailing, New Gas Market development, Building of Gas Plants and Gas strategy advisory. Supply by KiakiaGas provides LPG products and equipment for corporate and institutional clients for the project and operational needs. If you need a partner with hands-on local expertise in the Nigerian Gas space or any of our bespoke solutions/services, kindly visit www.kiakiagas.com to learn more.

 

 

 

Consuming liquefied petroleum gas (LPG) is becoming increasingly essential in Nigeria, particularly now that the government is advocating for the use of Autogas. Previously, LPG was only used in the kitchen and for other large-scale industrial applications. There is a desperate demand for it right now. There is a money-making potential in this entire situation, and you cannot afford to pass it up. If you've ever considered establishing a LPG business, you should give gas distribution business a go today, at least on a modest scale. This is due not just to the fact that everyone cooks, but also to the fact that next-generation automobiles are built to use it. Kiakiagas is a company that has vast experience in the building of gas projects in quick time. Our platform provides data to support infrastructural development in the gas value chain. Our management platform allows you to monitor the progress of your project in real time with our real time project monitoring. We offer a variety of services that cater for every stage of your project development.

 

You can apply to become a super distributor for LPG or a minor LPG distribution business which will include sales of LPG cookers, fittings, and site installation in a specific location. LPG is supplied from the depot with full LPG tank in bulk at a reasonable wholesale price. This will then be redistributed and sold at a reasonable profit margin to the consumers. Challenges in LPG distribution have prompted the existing distributors out of the market while the prospective distributors are prevented having acquired wrong information from wrong source about the LPG business. Kiakiagas are well informed about the LPG business through the stages of chain of distribution. With our team of business and data analysts, we calculate your prospective strength, weaknesses, opportunities and threats in the business based on our existing data before you venture into the business. In other words, we conduct a feasibility study which represents a snapshot information to guide you through the business so as to maximize the profit in the located area. Below are the challenges that you are likely to face as a prospective distributor of LPG:

 

CHALLENGES

 

LPG Tank/Cylinder Management Issues: As a super dealer, you must ensure that you have enough complete gas cylinder stock at all times to meet client orders immediately. To ensure effective supply, at least one supply truck should be present. The basic truth is that the initial money required to establish an LPG wholesale distribution firm is substantial. However, with an excellent business plan and feasibility study, it is much easier to secure the assistance of both investors and financial institutions. The chances of becoming a successful LPG distributor are increased if the feasibility assessment of the location is carried out by a team of our experts in the LPG rather than doing it alone or inviting a non-competent instructor If you're thinking about beginning a liquefied petroleum gas distribution business, it's a good idea to see if there are any suitable franchise possibilities available that could help you get started faster. Kiakiagas will get you cleared from the relevant authorities that regulates the LPG activities in the oil and gas sector. This is a cogent reason why you should book a session with us through our website to have discussion on how you can set up LPG distribution businesses.

 

Government Regulation: Another risk in the business is government regulation. Should government decide to increase the price of LPG today, some consumers may find it difficult to take and have to go back to using kerosene or firewood. If that happens, you lose some customers and your sales will drop. However, government is always trying to reduce the price of cooking gas to encourage its usage and discourage deforestation.

 

Competition: The company is at a competitive disadvantage as an emerging liquefied petroleum gas wholesale business startup since the company brand is just beginning to create an identity in the marketplace. Unless you are really committed to the idea of a startup, you can avoid the time required to build a brand identification by purchasing a business with an established name. As a startup, your best bet is to gradually build brand awareness over months and years. A LPG wholesale business acquisition, on the other hand, can place one at the helm of a brand that is already well-known in the target market.

 

Choice of Location: As a retailer dealing in the distribution of LPG in a certain location, you have a better chance of reaching more customers because services are closer to end consumers. Kiakiagas will equip you with proper strategies to make you the best alternative for them when it comes to proximity to the Gas market. In essence, the retailer serves as a profitable link between a huge gas plant and its buyers. Before starting the LPG distribution business, it is necessary to go through training to at least obtain the fundamental safety precautions. Some of the topics covered include, but are not limited to, how to detect and repair leaks in gas cylinders, how to weigh cylinders of various sizes using a scale, how to properly refill gas cylinders such as 3kg, 5kg, 6kg, 12.5kg, 13kg, , 25kg and 50kg and how to charge for prices of any custom quantity that customers may request. The Retail sub-division is rapidly extending its reach and client base across the country, with the objective of being the preferred market leader in delivering refined petroleum products to consumers across the country.

 

 

 

 

 

 

 

 

Safety: Risks in LPG business According to Darlinton Omeh, an investment analyst, every business has its peculiar setback and the biggest risk in cooking gas business is fire explosion, which is very common due to the high inflammable nature of liquefied natural gas. That isn’t much problem though since it can easily be mitigated or even avoided. ‘‘To be able to curtail this, you need to be alert at all times to detect when there is leakage in those cylinders as leakage is one of the major causes of fire and explosion. You also need to buy good fire extinguisher that can be very handy in time of minor fire outbreak,’’ he said. Kiakiagas will engage you with safety training which will aid in the selection of a safe location for the LPG distribution business. Because gas can cause environmental risks, launching in a cool, dry location with strong demand is critical. Training with Kiakiagas will help you to acquire accurate measurement of gases in tons, kilos, or litres. LPG purchased for resale is stored in tanks or 50kg cylinders before being sold in smaller quantities to customers who keep it in 12.5kg, 6kg, or 3kg cylinders.

 

Funding: A typical LPG distribution business may incur expenses such as funding to establish a new business, renting a shop, and purchasing operational materials such as tanks, cylinders, scales, transfer hoses, and other tools. A significant sum of money will be required to purchase the product (gas) and transfer it directly to the retail business. In any case, the typical cost of beginning a retail LPG distribution business is between 290,000 and 390,000 NGN. Some people may be put off by the prospect of starting a gas refilling business because someone they know has failed miserably. People are smiling to the bank functioning as LPG Suppliers, despite the fact that it may be depressing.

 

OPPORTUNITIES

 

Gas companies, both the suppliers and retailers are making good money in the business. It is good news that more Nigerians are beginning to use cooking gas for various domestic cooking purposes. That will help decrease the problems of deforestation and help conserve the nation’s natural forests and prevent potential disasters inherent in desert encroachment such as erosion. Apart from the environmental benefits, the increased number of people, especially in urban areas, who are using cooking gas has created good business opportunity for smart entrepreneurs who can now trade on cooking gas and cooking gas equipment to make good profits.

 

Push by the federal government: Cooking gas business is very profitable and you don’t have to break the bank before you can start. This is a big business that anyone who is into it can be proud of. Gas cylinders How exactly can one start cooking gas business in Nigeria? Before we go into the details, let us first take a look into the profit potential in this business as well as the risks involved. If you have been observing the news lately, there is a push by the federal government of Nigeria to deepen the usage of LPG in the country.  And this push will start yielding results soon. If you have been procrastinating about starting your own LPG distribution business, this maybe the reason to revisit that plan and put it back to work. 

 

Cooking gas value chain: Opportunity inherent in the cooking gas value chain is the sale of cylinders and accessories, which can be managed alongside the gas plant, offering a one-stop service for customers. “This is relatively the lowest profit you can make in cooking gas business if you are in respectable position where you get good patronage. Most people make much more than what I calculated here. So, it’s not in any way by exaggeration. “For a business you started with N300,000, N150,000 profit is a super profit by all standards. Imagine if you invest more resources and take it higher, your profit will be much more mouthwatering.

 

 

 

 

 

 

 

Understanding LPG Demand Curve: Now imagine if we can switch another 25% of our population from House Hold Kerosene to cooking gas in the next 36 months 50% of annual consumption= 600million kg (1.54billion Litres).  Cooking gas business is a very profitable business, but just like every other en-devour of life, it comes with its own challenges. Most of the energy used for domestic cooking in Nigerian homes comes from traditional forms of energy like HHK (kerosene) which accounts for 65-70% of the energy consumption in Nigeria, LPG stands at 25%, while other fossil fuels like firewood and coals accounts for the remaining 5%.

 

Nigeria's average household size: Another opportunity is that Nigeria's average household size is six people, according our existing data. When you split 200 million by six people per family, you get 33 million people who buy cooking gas on a monthly basis. Because the demand curve is still expanding, many people are unaware of it. Positioning oneself in the market now is equivalent to purchasing Bitcoin at a price of 0.0003 dollars. Remember that this is a moving market. Exponential growth is possible. Though demand does not change on a daily basis like fuel usage, consider the demand curve if every household in the country utilizes cooking gas.

 

Way Forward

Locating business closer to customers and then increasing advertising budget will help solve the issue. Whether they realize it or not, the majority of Nigerians in metropolitan areas (if not all) use LPG to cook. That number is steadily increasing, and now is your time to profit. All you have to do is do a market study (research) to find out when LPG is in great demand, who or what class of individuals requests it, and where they are concentrated. The information you've gathered thus far will help you choose a profitable site, one that will provide you with a constant market for gas and its accessories. In reality, it is preferable to locate in a virgin place with a good level of daily demand and then utilize advertising to fill in any gaps. Advertising is never-ending and never-ending. Some clients have yet to form a strong bond with any LPG provider. It is your responsibility to approach them with enticing offers such as first-time purchase discounts or an offer to pick up their cylinders, refill them, and return them to them. The working class would fall for it, and you'd be laughing all the way to the bank.

Conclusion

There is money to be made in the gas distribution business in Nigeria right now, this advantage can be taking with a little hard work. It all entails learning the ropes of the business, get the help of specialists, conduct research and analysis, secure funding, and conduct feasibility study. Most aspiring gaspreneur are intimidated by the prospect of obtaining a LPG feasibility study. A solid LPG feasibility study acts as a reality check, comparing your business instincts to those of your competitors. The backend of business planning requirements is a feasibility analysis of the LPG company strategy.

In most cases, tracking tools are incorporated into the company's launch plan in order to run a successful LPG business. It is a wise decision to learn as much as possible from a respected company that has created a landmark in the industry as part of due diligence on launching a LPG depot, wholesale, and retail business. You're being overconfident if you believe your local competitors will provide you technical advice. Why would they want to educate a competitor in the future? As long as they do not perceive a competitive danger, an owner of an LPG business in another town, city, state, or country may be more than pleased to provide thorough advice.

KiakiaGas Limited is a leading Gas business in Lagos, Nigeria with expertise in LPG retailing, New Gas Market development, Building of Gas Plants and Gas strategy advisory. Supply by KiakiaGas provides LPG products and equipment for corporate and institutional clients for the project and operational needs. If you need a partner with hands-on local expertise in the Nigerian and African Gas space or any of our bespoke solutions/services, kindly visit www.kiakiagas.com to learn more.

 

Prices on the international market for LPG rose continuously throughout the previous week while the domestic markets for LPG were decreasing in the immediately preceding week

 

• The international prices of LPG reached their apex point at the end of the previous week despite increases from the beginning of the week.
• Depot prices were on the fallen note in the preceding week with a minimum of N477.94 per kg in the previous week.
• The market gaps between prices at the depot and those at the international level continued to narrow as more depots gained their strength to load LPG from the depot
• In the week under review and the previous two weeks, price variations in LPG per kg remained within a narrow range.
• Within the Nigeria region, regional variations in LPG retail prices continue to exist.           The regional variation in LPG prices across Nigeria has been a recurring feature of the Nigerian LPG industry. The South West area has the lowest rates due to its closeness to the coastal region.        
  • Inflation Rate and the LPG: Inflation has consistently fallen over the last eight months. It fell from 15.99% in October to 15.40% in November 2021, (See Illustration D). Coupled with the high prices of goods and services in the month of December 2021, the expected inflation rate is 17.01%. This is due to Xmas and New Year festive that are fast approaching. In April 2021, it fell from 18.12% to 17.93%. in May 2021 The composite food index reduced to 18.34% in October from 19.57% in September 2021, 20.57 per cent in January 2021, 20.30% in August 2021, and 15.48 per cent in July 2020, compared to 15.18 per cent in June 2020. For the month of May, a 15.4 per cent inflation rate is expected. The relaxation of the Covid-19 rule may have influenced the inflation rate trend.
   
  • Exchange Rate and the LPG: In line with widening discrepancies in the parallel market, the Central Bank of Nigeria's (CBN) adjusted the exchange rate to fine-tune the forex market. (Figure E). Movement in the exchange rate along the same line was increasing and ranged from 414.26 to 414.89/US$1 in the previous week. One of the factors that influence the price of LPG on the international market is the exchange rate. Since more LPG is imported, a lower exchange rate has little impact on the selling price of LPG on the local market.
   
  • Crude oil price and the LPG: The price of LPG is positively related to the price of crude oil since it is sometimes a by-product of crude oil. The Prices of crude oil in the international market reached their highest point before the end of the week, however, they ended on a fallen note (Figure F). The cost of LPG increases as the price of crude oil falls on the international market. This suggests a low LPG market price.
   
  • Foreign Reserves: The Nigerian Gross Foreign Reserve dropped from $40.52 billion to $40.49 billion last week. Despite a rise in the reserves, the exchange rate was ranged from 411.63 to 410.64 in the previous week. This is positively correlated to the crude oil prices that experienced a sharp fall at the end of the week. A decrease in the reserve might be a result of the reduction in the prices of crude oil over the preceding week.
   
  • PMI: The CBN Purchasing Managers Index (PMI) recorded overall growth in employment, business and inventory in the month of December while ordering in the category of supply for power, gas, steam and air conditioning remained stagnant while business operation & inventory were static in the same month at 45.7 per cent.
             
  • Covid-19: Covid-19 causes the demand for goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts the LPG market
  • Omicron Variant: A new strain of COVID-19 recently detected in southern Africa as a “variant of concern” by the World Health Organization is also no doubt causing concern among the world leaders. The implication of this variant contracts the LPG market if not curtailed early.
   

 

 

• Reducing the effect of the Covid-19 and the Omicron variant entails more campaigns and public awareness of the virus as people are easily carried away and relaxing. Vaccines for Covid-19 and Omicron variant should be distributed without much delay if available.

 

The prices in the weeks to come may rise due to pressure on the supply of butane coupled with the increase in the price of goods and services in the country

 

 

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 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

 

 

In the immediately preceding week, the international prices for LPG sloped upward while domestic prices for LPG continue to fall

• The international prices of LPG in the previous week continued to rise from the beginning and reached their maximum level towards the end of the week, however, it ended on a fallen note.
• Depot prices continue to fall due to the federal government intervention to increase the local supply of LPG.
• Due to the increase in the foreign markets price, the price gaps between prices at the depot level and those at the international level continue to be widened.
• In the week under review, the price continues to decrease per kg of LPG and has been trending for the past few weeks.
• Due to transportation costs and proximity to the coast, disparities in LPG retail pricing still exist across the country.           A daily feature of the Nigerian LPG market was regional variance in LPG prices across the country. Because of the in price speculation and living style, the LPG in South-West region has the highest price.      
• • Inflation Rate and the LPG: Over the last 8 months, the rate of inflation has been steadily decreasing. It fell from 15.99% in October 2021 to 15.40% in November. The anticipated inflation rate for the month of December 2021 is 16.80%. The monetary measure put in place by the monetary authorities contributes to the fall in the rate of inflation trend. The composite food index reduced to 20.3% in August 2021 from 21.03% in July. It was 22.95% in March 2021 to 22.72% in April 2021, 20.57% in January 2021, 19.56% in December 2020, 15.48% in July 2020 compared to 15.18% in June 2020.
   
  • Exchange Rate and the LPG: The exchange rate continues to rise from the beginning to the end of the week. It ranged from 412.0 to 412.49 in the week due to the adjustment made by the CBN to stabilize the naira against the dollar. The exchange rate is one of the factors that influence LPG prices on the international market. A higher exchange rate would boost the price of LPG on the local market by a considerable amount. This means that the LPG market is in a state of flux, Figure E.
   
  • Crude oil price and the LPG: The relationship between LPG price and crude oil price remains positive, as a by-product of crude oil. Crude oil prices were at their lowest point at the end of the week after somewhat increases during the week. (Figure F). This shows that the price of crude oil has not been stable in the international market. This reflects variability in the market price for LPG.
   
  • Foreign Reserves: As in the previous week, the Nigerian Gross Foreign Reserve decreased slightly from $40.57 billion to $40.52 billion. This is due to the increase in supply of dollar from the reserve to stabilize the exchange rate.
   
  • PMI: The CBN Purchasing Managers Index (PMI) recorded overall growth in employment, business and inventory in the month of December while ordering in the category of supply for power, gas, steam and air conditioning remained stagnant while business operation & inventory were static in the same month at 45.7 per cent.        

• Covid-19: Covid-19 causes demand for goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts to the LPG market
• Omicron Variant: A new strain of COVID-19 recently detected in southern Africa as a “variant of concern” by the World Health Organization is also no doubt causing concern among the world leaders. The implication of this variant contracts the LPG market if not curtailed early.   Reducing the effect of the Covid-19 entails more campaigns and public awareness of the virus as people are easily carried away and relaxing. Vaccines for Covid-19 should be distributed without much delay if available.   The prices in the weeks to come may fall due to the increase in the local supply of LPG by the federal government

 

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 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  

 

Prices on the international market for LPG fluctuated throughout the previous week while the domestic markets for LPG were decreasing in the immediately preceding week

• The international prices of LPG reached their apex point towards the end of the previous week.
• Depot prices were on the fallen note in the preceding week with a minimum of N552.50 per kg in the previous week.
• The market gaps between prices at the depot and those at the international level continued to narrow as more depots gained their strength to load LPG from the depot
• In the week under review and the previous two weeks, price variations in LPG per kg remained within a narrow range.
• Within the Nigeria region, regional variations in LPG retail prices continue to exist.       The regional variation in LPG prices across Nigeria has been a recurring feature of the Nigerian LPG industry. The South West area has the lowest rates due to its closeness to the coastal region.        
• • Inflation Rate and the LPG: Inflation has consistently fallen over the last eight months. It fell from 15.99% in October to 15.40% in November 2021, (See Illustration D). Coupled with the high prices of goods and services in the month of December 2021, the expected inflation rate is 17.01%. This is due to Xmas and New Year festive that are fast approaching. In April 2021, it fell from 18.12% to 17.93%. in May 2021 The composite food index reduced to 18.34% in October from 19.57% in September 2021, 20.57 per cent in January 2021, 20.30% in August 2021, and 15.48 per cent in July 2020, compared to 15.18 per cent in June 2020. For the month of May, a 15.4 per cent inflation rate is expected. The relaxation of the Covid-19 rule may have influenced the inflation rate trend.
   
  • Exchange Rate and the LPG: In line with widening discrepancies in the parallel market, the Central Bank of Nigeria's (CBN) adjusted the exchange rate to fine-tune the forex market. (Figure E). Movement in the exchange rate along the same line experienced somewhat fluctuation and ranged from 411.72 to 411.91/US$1 in the previous week. One of the factors that influence the price of LPG on the international market is the exchange rate. Since more LPG is imported, a lower exchange rate has little impact on the selling price of LPG on the local market.
   
  • Crude oil price and the LPG: The price of LPG is positively related to the price of crude oil since it is sometimes a by-product of crude oil. The Prices of crude oil in the international market reached their highest point towards the end of the week, however, they ended on a fallen note (Figure F). The cost of LPG increases as the price of crude oil falls on the international market. This suggests a low LPG market price.
   
  • Foreign Reserves: The Nigerian Gross Foreign Reserve dropped from $41.40 billion to $41.30 billion last week. Despite a rise in the reserves, the exchange rate was ranged from 411.63 to 410.64 in the previous week. This is positively correlated to the crude oil prices that experienced a sharp fall at the end of the week. A decrease in the reserve might be a result of the reduction in the prices of crude oil over the preceding week.
   
  • PMI: The CBN Purchasing Managers Index (PMI) recorded overall growth in employment, business and inventory in the month of December while ordering in the category of supply for power, gas, steam and air conditioning remained stagnant while business operation & inventory were static in the same month at 45.7 per cent.            
  • • Covid-19: Covid-19 causes the demand for goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts the LPG market
    • Omicron Variant: A new strain of COVID-19 recently detected in southern Africa as a “variant of concern” by the World Health Organization is also no doubt causing concern among the world leaders. The implication of this variant contracts the LPG market if not curtailed early.  
      • Reducing the effect of the Covid-19 and the Omicron variant entails more campaigns and public awareness of the virus as people are easily carried away and relaxing. Vaccines for Covid-19 and Omicron variant should be distributed without much delay if available.   The prices in the weeks to come may rise due to pressure on the US supply of butane coupled with the increase in the price of goods and services in the country    
      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 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

 

In the immediately preceding week, the international prices for LPG sloped upward while domestic prices for LPG were sloped downward

• The international prices of LPG in the previous week continued to rise from the beginning till the end of the week.
• Depot prices were on a fallen note throughout the week.
• Due to the increase in the foreign markets price, the price gaps between prices at the depot level and those at the international level became widened.
• In the week under review, the price continues to increase per kg of LPG and has been trading for the past few weeks.
• Due to transportation costs and proximity to the coast, disparities in LPG retail pricing still exist across the country.             A daily feature of the Nigerian LPG market was regional variance in LPG prices across the country. Because of the in price speculation and living style, the LPG in South-West region has the highest price.    
• • Inflation Rate and the LPG: Over the last 8 months, the rate of inflation has been steadily decreasing. It fell from 16.63% in September 2021 to 15.99% in October. The anticipated inflation rate for the month of September is 16.80%. The monetary measure put in place by the monetary authorities contributes to the fall in the rate of inflation trend. The composite food index reduced to 20.3% in August 2021 from 21.03% in July. It was 22.95% in March 2021 to 22.72% in April 2021, 20.57% in January 2021, 19.56% in December 2020, 15.48% in July 2020 compared to 15.18% in June 2020.
   
  • Exchange Rate and the LPG: The exchange rate continues to rise from the beginning tohe end of the week. It rose from 411.73 to 411..75 in the week due to the adjustment made by the CBN to stabilize the naira against the dollar. The exchange rate is one of the factors that influence LPG prices on the international market. A higher exchange rate would boost the price of LPG on the local market by a considerable amount. This means that the LPG market is in a state of flux, Figure E.
   
  • Crude oil price and the LPG: The relationship between LPG price and crude oil price remains positive, as a by-product of crude oil. Crude oil prices were at their highest point in the middle of the week despite a fall towards the end of the week. (Figure F). This shows that the price of crude oil has not been stable in the international market. This reflects variability in the market price for LPG.
   
  • Foreign Reserves: As in the previous week, the Nigerian Gross Foreign Reserve decreased slightly from $41.08 billion to $40.90 billion. This is due to the increase in supply of dollar from the reserve to stabilize exchange rate.
   
  • PMI: The CBN Purchasing Managers Index (PMI) recorded overall growth in employment, business and inventory in the month of December while ordering in the category of supply for power, gas, steam and air conditioning remained stagnant while business operation & inventory were static in the same month at 45.7 per cent.      

 

 

• Covid-19: Covid-19 causes demand for goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts to the LPG market
• Omicron Variant: A new strain of COVID-19 recently detected in southern Africa as a “variant of concern” by the World Health Organization is also no doubt causing concern among the world leaders. The implication of this variant contracts the LPG market if not curtailed early.

• Inflation Rate and the LPG: Over the last 8 months, the rate of inflation has been steadily decreasing. It fell from 16.63% in September 2021 to 15.99% in October. The anticipated inflation rate for the month of September is 16.80%. The monetary measure put in place by the monetary authorities contributes to the fall in the rate of inflation trend. The composite food index reduced to 20.3% in August 2021 from 21.03% in July. It was 22.95% in March 2021 to 22.72% in April 2021, 20.57% in January 2021, 19.56% in December 2020, 15.48% in July 2020 compared to 15.18% in June 2020.

 

• Exchange Rate and the LPG: The exchange rate continues to rise from the beginning tohe end of the week. It rose from 411.73 to 411..75 in the week due to the adjustment made by the CBN to stabilize the naira against the dollar. The exchange rate is one of the factors that influence LPG prices on the international market. A higher exchange rate would boost the price of LPG on the local market by a considerable amount. This means that the LPG market is in a state of flux, Figure E.

 

• Crude oil price and the LPG: The relationship between LPG price and crude oil price remains positive, as a by-product of crude oil. Crude oil prices were at their highest point in the middle of the week despite a fall towards the end of the week. (Figure F). This shows that the price of crude oil has not been stable in the international market. This reflects variability in the market price for LPG.

 

• Foreign Reserves: As in the previous week, the Nigerian Gross Foreign Reserve decreased slightly from $41.08 billion to $40.90 billion. This is due to the increase in supply of dollar from the reserve to stabilize exchange rate.

 

• PMI: The CBN Purchasing Managers Index (PMI) recorded overall growth in employment, business and inventory in the month of December while ordering in the category of supply for power, gas, steam and air conditioning remained stagnant while business operation & inventory were static in the same month at 45.7 per cent.

Reducing the effect of the Covid-19, entails more campaign and public awareness of the virus as people are easily carried away and relaxing. Vaccines for Covid-19 should be distributed without much delay if available.

 

The prices in the weeks to come may rise due to the effect of an increase in the LPG price level from depot even though the month-on-month rate of inflation is reducing.

 

 

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 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

 

 

Prices on the international market for LPG fluctuated throughout the previous week while the domestic markets for LPG were decreasing in the immediately preceding week

• The international prices of LPG reached their apex point towards the end of the previous week.
• Depot prices were on the fallen note in the preceding week with a minimum of N552.50 per kg in the previous week.
• The market gaps between prices at the depot and those at the international level continued to narrow as more depots gained their strength to load LPG from the depot
• In the week under review and the previous two weeks, price variations in LPG per kg remained within a narrow range.
• Within the Nigeria region, regional variations in LPG retail prices continue to exist.         The regional variation in LPG prices across Nigeria has been a recurring feature of the Nigerian LPG industry. The South West area has the lowest rates due to its closeness to the coastal region.      
• • Inflation Rate and the LPG: Inflation has consistently fallen over the last seven months. It fell from 16.63% in September to 15.99% in October 2021, (See Illustration D). Coupled with the high prices of goods and services in the month of November 2021, the expected inflation rate is 17.2%. In April 2021, it fell from 18.12% to 17.93%. in May 2021 The composite food index reduced to 18.34% in October from 19.57% in September 2021, 20.57 per cent in January 2021, 20.30% in August 2021, and 15.48 per cent in July 2020, compared to 15.18 per cent in June 2020. For the month of May, a 15.4 per cent inflation rate is expected. The relaxation of the Covid-19 rule may have influenced the inflation rate trend
   
  • Exchange Rate and the LPG: In line with widening discrepancies in the parallel market, the Central Bank of Nigeria's (CBN) adjusted the exchange rate to fine-tune the forex market. (Figure E). Movement in the exchange rate along the same line experienced somewhat fluctuation and ranged from 411.63 to 411.64/US$1 in the previous week. One of the factors that influence the price of LPG on the international market is the exchange rate. Since more LPG is imported, a lower exchange rate has little impact on the selling price of LPG on the local market.
   
  • Crude oil price and the LPG: The price of LPG is positively related to the price of crude oil since it is sometimes a by-product of crude oil. The Prices of crude oil in the international market were stable in the middle of the week. however, there was a sharp decrease at the end of the previous week (Figure F). The cost of LPG increases as the price of crude oil falls on the international market. This suggests a low LPG market price.
   
  • Foreign Reserves: The Nigerian Gross Foreign Reserve dropped from $41.40 billion to $41.30 billion last week. Despite a rise in the reserves, the exchange rate was ranged from 411.63 to 410.64 in the previous week. This is positively correlated to the crude oil prices that experienced a sharp fall at the end of the week. A decrease in the reserve might be a result of the reduction in the prices of crude oil over the preceding week.
   
  • PMI: The CBN Purchasing Managers Index (PMI) recorded overall growth in employment, business and inventory in the month of December while ordering in the category of supply for power, gas, steam and air conditioning remained stagnant while business operation & inventory were static in the same month at 45.7 per cent.        
  • • Covid-19: Covid-19 causes the demand for goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts the LPG market    
    • Omicron Variant: A new strain of COVID-19 recently detected in southern Africa as a “variant of concern” by the World Health Organization is also no doubt causing concern among the world leaders. The implication of this variant contracts the LPG market if not curtailed early.
     

• Reducing the effect of the Covid-19 and the Omicron variant entails more campaigns and public awareness of the virus as people are easily carried away and relaxing. Vaccines for Covid-19 and Omicron variant should be distributed without much delay if available.  

The prices in the weeks to come may rise due to pressure on the US supply of butane coupled with the increase in the price of goods and services in the country.

 

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 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