Between the 14th and 21st of December, 2020, Kiakia Gas was honored to be a lead faculty to facilitate a state-wide LPG sensitization program for LPG retailers across the 3 senatorial districts in Delta state. The sensitization program was co-facilitated by the Zonal Director of DPR South-South Zone and the Delta state Fire service.

Did you know that Delta State alone is the 3rd largest market in terms of LPG consumption in Nigeria. Her total consumption is 6.6% of the total LPG consumed in Nigeria, and is located in a region that is expected to have grown by 18% y-o-y by mid-2021.  It was indeed a time when our focus and passion to see LPG used as the primary cooking fuel of households were re-ignited. We also discussed industry challenges and strategies needed to resolve them and increase penetration and eventually ensure delivery of LPG to the last-mile customer.

We also considered global industry standards in delivering our services to clients. Thanks to this program, we are certain that by this time in 2021, the Delta State LPG sector would have seen measurable improvement.

We appreciate the Delta State Ministry of Oil and Gas and the Administration of Governor Ifeanyi Okowa for hosting such a noteworthy program, and for inviting us to facilitate the program. We reinstate our commitment to ensuring the Nigerian LPG industry reaches the last-mile customer through our services.

Thank you, and we wish you an amazing festive season. Covid-19 is real; Stay Safe.

 

 

"Prices remained largely stable in the domestics market and only slightly less stable in the international market for LPG in the immediately preceding week "

• • International prices of LPG started on a rising note in the week under review. The rise continued until the end of the week.
• • 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 well over double the prices at the international market.
• • Regional disparities in the retail prices of LPG within the country continue to persist.

   

 

 

• The stability in the exchange value of the naira to the US. $ was reflected in the stability of LPG prices domestically throughout the week (Figure D).

• The gross foreign reserves of Nigeria is continuing a downward trend. It dropped by 0.51% through the 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.
• The composite Purchasing Managers’ Index (PMI) for the month March 2020 stood at 49.2 points, indicating contraction in Non-manufacturing PMI for the first time after thirty-four consecutive months of expansion.
• For the gas market, managers report declining inventory, new orders and employment.
• The sharp drop in the price of oil in the international market is due to the coronavirus pandemic as well as the dwindling global economic activities (Figure E)            
  • 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 occasioned by the extended lock-down period.
  • A potential continuous drop in the value of the naira might signal increases in domestic LPG prices particular if oil prices in the international market continue to drop.