Prices on international market for LPG increases during the week simultaneously, domestic markets for LPG sloped upward after an initial increase in the immediately preceding week

 

• The international prices of LPG continue to increase after an initial drop at the beginning of the previous week.
• Depot prices were also on the risen note in the preceding week with a maximum of N9.5 million per 20 metric tonnes in the previous week.
• The market gaps between prices at the depot and those at the international level continued to widen.
• 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: Over the last 5 months, the rate of inflation has been steadily decreasing. It fell from 17.38% in July to 17.01% in August 2021. (Fig D). From 18.17 in March 2021 to 18.12 in April 2021. 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: 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 increased and ranged from 410.59 to 410.70/US$1 in the previous week. One of the factors that influences 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 continued to rise from the beginning till the end of the previous week (Figure F). The increase was fueled by a massive drop in US crude stocks as well as production issues in the Gulf of Mexico. The cost of LPG increases as the price of crude oil rises on the international market. This suggests a high LPG market price.

 

• Foreign Reserves: The Nigerian Gross Foreign Reserve rose from $35.45 billion to $36.11 billion last week. Despite a rise in the reserves, the exchange rate was ranged from 410.59 to 410.70 in the previous week. This is positively correlated to the crude oil prices that continued to rise till the end of the week. An increase in the reserve might be a result of the increase 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 demand of goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts the LPG market.  
    • 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 pressure on the US supply of butane couple 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 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

   

 

In the immediately preceding week, prices in the foreign market continue to rise throughout the previous week while domestic prices for LPG also inclined in the week under review

 

• The international prices of LPG in the previous week continue to rise from the beginning to the last day of the week.
• Depot prices were not stable throughout the week compared to the previous week.
• Despite a somewhat higher price in foreign markets price, the price gaps between prices at the depot level and those at the international level have remained consistent.
• In the week under review, the price continues to increase per kg of LPG and has been trading for the past 8 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 South-West region has the highest price.

 

 

• Inflation Rate and the LPG: Over the last 5 months, the rate of inflation has been steadily decreasing. It fell from 17.38% in July to 17.01% in August 2021. (Fig D). From 18.17 in March 2021 to 18.12 in April 2021. 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 experienced some increases from N410.51/$1 to 410.58/$1 at the end of the week due to the continued growth of inequalities in the parallel market. The exchange rate is one of the factors that influences 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. There was a drop in the Crude oil prices towards the end of the week after initial rises from the beginning 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 increased slightly from $34.89 billion to $35.36 billion. This is due to increase in the price of oil and assistance from external creditors to grant loan for infrastructure development.

 

• 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   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 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

 

 

Prices on domestic markets for LPG increases during the week while international market for LPG also showed some level of appreciation in the immediately preceding week

 

• The international prices of LPG continue to be rising throughout the previous week.
• Depot prices also showed some level of apprciation in the preceeding week despite official public holidays for Id-El-Kabir.
• The market gaps between prices at the depot and those at the international level have begun to widen.
• 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: Over the last 13 months, the rate of inflation has been steadily increasing. However it reached its highest point In March 2021 (18.17%), before it started decreases in the last three months. It fell from 18.12 to 17.93 in May to 17.75% in June 2021. (Fig D). From 12.8 in July 2020, to 13.2 in August 2020. The composite food index reduced from 22.95 in March 2021 to 22.72 in April 2021, 20.57 in January 2021, 19.56 in December 2020, 15.48 percent in July 2020 compared to 15.18 percent in June 2020. The anticipated inflation rate for the month of May is 15.4%. The relax of Covid-19 rule might contribute to the change in the rate of inflation trend.

 

• Exchange Rate and the LPG: In line with widening discrepancies in the parallel market, the Central Bank of Nigeria's (CBN) pegged the exchange rate to fine tune the forex market. (Figure E). Movement in the exchange rate along the same line was maintained at 410.12/US$1 throughout the week. One of the factors that influences 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 its peak at he middle of the week after then, it started falling till the end of the week. (Figure F). The cost of LPG increases as the price of crude oil rises on the international market. This suggests a high LPG market price.

 

• Foreign Reserves: The Nigerian Gross Foreign Reserve rose from $33.11 billion to $33.25 billion last week. Despite a rise in the reserves, the exchange rate was ranged from 412.10 to 413.11 in the previous week even though crude oil prices continued to rise till the end of the week. Increase in the reserve might be as a result of increase in the price of crude oil over the preceeding 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 demand of goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts the LPG market
   

• 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 pressure on the US supply of butane couple 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 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

 

In the immediately preceding week, prices in the foreign market fluctuated but ended up on rising note while domestic prices for LPG initially increased before fluctuating for the rest of the week at a relatively stable range

• The international prices of LPG fluctuated throughout the week. but ended at an increasing rate.
• Depot prices were not stable throughout the week compared to the previous week.
• Despite a somewhat higher price in foreign markets, the shrinking of price gaps between prices at the depot level and those at the international level has remained consistent.
• In the week under review, the price increased per kg of LPG and has been within the stable ranges with in the last 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 increase in the LPG price from the depots the South-West region has the highest price.    
• • Inflation Rate and the LPG: Over the last 13 months, the rate of inflation has been steadily increasing. However it reached its highest point In March 2021 (18.17%), before it started decreases in the last three months. It fell from 18.12 to 17.93 in May to 17.75% in June 2021. (Fig D). From 12.8 in July 2020, to 13.2 in August 2020. The composite food index reduced from 22.95 in March 2021 to 22.72 in April 2021, 20.57 in January 2021, 19.56 in December 2020, 15.48 percent in July 2020 compared to 15.18 percent in June 2020. The anticipated inflation rate for the month of May is 15.4%. The relax of Covid-19 rule might contribute to the change in the rate of inflation trend.
   
  • Exchange Rate and the LPG: The exchange rate experienced some decreases from N410.10/$1 to 410.11/$1 at the end of the week due to the continued growth of inequalities in the parallel market. The exchange rate is one of the factors that influences 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 fluctuated throughout the previous week but showed some level of appreciation at the end 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 showed some level of appreciation from $33.40 billion to $33.53 billion despite increases in the price of oil and fall of the Naira from 410.10/$1 to 410.11/$1. Increase in the external reserve is due to the CBN policy on measure to stabilize naira rate against dollar.
   
  • 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   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 increase in the LPG price level from depot.

 

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

 

Prices on domestic markets for LPG relatively stable while the international markets for LPG were on increasing rate in the same week

• The international prices of LPG were continuously increasing after a slight drop around the beginning of the previous week.
• Depot prices fluctuated throughout the week but set to appreciate at 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 persists.
• Price changes per kg of LPG in the week under review and in the past few weeks have increased in the week under review.
• 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. There is wide gap between the South East and South-west prices, this is due to its distance from the coastal region, has the highest prices due to distance from the coastal regions.      
• • Inflation Rate and the LPG: Inflation has consistently risen over the last 13 months. However, it peaked in March 2021 (18.17 percent), after which it began to decline in the next three months. In June 2021, it dropped from 18.12 percent to 17.93 percent. (See Illustration D). In July 2020, the rate increased to 12.8 degrees, and in August 2020, it rose to 13.2%. The composite food index fell from 22.95 percent in March 2021 to 22.72 percent in April 2021, 20.57 percent in January 2021, 19.56 percent in December 2020, and 15.48 percent in July 2020, compared to 15.18 percent in June 2020. For the month of May, a 15.4 percent inflation rate is expected. The relaxation of the Covid-19 rule may have influenced the inflation rate trend..
   
  • Exchange Rate and the LPG: Exchange rate value from the CBN official site sloped upward from N410.15/$1 rate and maintained a flat rate of 410.16$1 till the end of the previous week. (Figure E). This followed the CBN action on blocking the sales of Dollar in the Bureau de Change and gave the responsibility to the commercial banks. 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 fluctuated from the beginning of the week till but ended up rising (Figure F). This indicates that a risen price of crude oil in the international market results in increase in the cost of LPG. This signal a rise in price of the LPG market.
   
  • Foreign Reserves: As in the previous week, the Nigerian Gross Foreign Reserve increased from $33.23 billion to $33.35 billion amid the devaluation and rising rate of the Naira at N410.15 to 410.16/US$1. This will signal to the investors and country's creditors the strength of naira and ability to repay debt.
   
  • 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: Covid-19 causes demand of goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts the LPG market  
     
    • 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 increase in the prices of goods and services and the pressure of LPG export on the US     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

 

 

Prices on domestic markets for LPG increases during the week while the international market for LPG also showed some level of appreciation in the immediately preceding week

• The international prices of LPG continue to be rising throughout the previous week.
• Depot prices also showed some level of apprciation in the preceeding week despite official public holidays for Id-El-Kabir.
• The market gaps between prices at the depot and those at the international level have begun to widen.
• 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: Over the last 13 months, the rate of inflation has been steadily increasing. However it reached its highest point In March 2021 (18.17%), before it started decreases in the last three months. It fell from 18.12 to 17.93 in May to 17.75% in June 2021. (Fig D). From 12.8 in July 2020, to 13.2 in August 2020. The composite food index reduced from 22.95 in March 2021 to 22.72 in April 2021, 20.57 in January 2021, 19.56 in December 2020, 15.48 percent in July 2020 compared to 15.18 percent in June 2020. The anticipated inflation rate for the month of May is 15.4%. The relax of Covid-19 rule might contribute to the change in the rate of inflation trend.
   
  • Exchange Rate and the LPG: In line with widening discrepancies in the parallel market, the Central Bank of Nigeria's (CBN) have adjusted the exchange rate (Figure E). Movement in the exchange rate along the same line was maintained at 413.11/US$1 up till the middle of the week but fell towards the end of the week. One of the factors that influences 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 rose throughout the week (Figure F). The cost of LPG increases as the price of crude oil rises on the international market. This suggests a high LPG market price.
   
  • Foreign Reserves: The Nigerian Gross Foreign Reserve rose from $33.11 billion to $33.25 billion last week. Despite a rise in the reserves, the exchange rate was ranged from 412.10 to 413.11 in the previous week even though crude oil prices continued to rise till the end of the week. Increase in the reserve might be as a result of increase in the price of crude oil over the preceeding 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 demand of goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts the LPG market

 

• Id-El- Kabir: Muslims throughout the world celebrated the Id-El- Kabir when rams were killed to make some sacrifice as ordained by Allah. People were seeing rejoicing and happy to eat meat cooked with cooking energy. During this period the demand for gas was expected to rise  

• Inflation Rate and the LPG: Over the last 13 months, the rate of inflation has been steadily increasing. However it reached its highest point In March 2021 (18.17%), before it started decreases in the last three months. It fell from 18.12 to 17.93 in May to 17.75% in June 2021. (Fig D). From 12.8 in July 2020, to 13.2 in August 2020. The composite food index reduced from 22.95 in March 2021 to 22.72 in April 2021, 20.57 in January 2021, 19.56 in December 2020, 15.48 percent in July 2020 compared to 15.18 percent in June 2020. The anticipated inflation rate for the month of May is 15.4%. The relax of Covid-19 rule might contribute to the change in the rate of inflation trend.

 

• Exchange Rate and the LPG: In line with widening discrepancies in the parallel market, the Central Bank of Nigeria's (CBN) have adjusted the exchange rate (Figure E). Movement in the exchange rate along the same line was maintained at 413.11/US$1 up till the middle of the week but fell towards the end of the week. One of the factors that influences 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 rose throughout the week (Figure F). The cost of LPG increases as the price of crude oil rises on the international market. This suggests a high LPG market price.

 

• Foreign Reserves: The Nigerian Gross Foreign Reserve rose from $33.11 billion to $33.25 billion last week. Despite a rise in the reserves, the exchange rate was ranged from 412.10 to 413.11 in the previous week even though crude oil prices continued to rise till the end of the week. Increase in the reserve might be as a result of increase in the price of crude oil over the preceeding 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.

 

• 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.
• Nigerians are advised to take the AstraZeneca COVID-19 vaccine, manufactured by the Serum Institute of India to be immune against the virus.

 

The prices in the weeks to come may rise due to pressure on the US supply of butane acouple 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 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

 

 

In the immediately preceding week, prices in the foreign market fluctuated but ended up on rising note while domestic prices for LPG initially increased before fluctuating for the rest of the week at a relatively stable range

• The international prices of LPG fluctuated throughout the week. but ended at an increasing rate.
• Depot prices were not stable throughout the week compared to the previous week.
• Despite a somewhat higher price in foreign markets, the shrinking of price gaps between prices at the depot level and those at the international level has remained consistent.
• In the week under review, the price increased per kg of LPG and has been within the stable ranges with in the last 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 distance from coastal areas the South-East region has the highest price.    
• • Inflation Rate and the LPG: Over the last 13 months, the rate of inflation has been steadily increasing. However it reached its highest point In March 2021 (18.17%), before it started decreases in the last three months. It fell from 18.12 to 17.93 in May to 17.75% in June 2021. (Fig D). From 12.8 in July 2020, to 13.2 in August 2020. The composite food index reduced from 22.95 in March 2021 to 22.72 in April 2021, 20.57 in January 2021, 19.56 in December 2020, 15.48 percent in July 2020 compared to 15.18 percent in June 2020. The anticipated inflation rate for the month of May is 15.4%. The relax of Covid-19 rule might contribute to the change in the rate of inflation trend.
   
  • Exchange Rate and the LPG: The exchange rate experienced some decreases from N410.20/$1 to 410.17/$1 at the end of the week due to the continued growth of inequalities in the parallel market. The exchange rate is one of the factors that influences 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 rose continuously after an initial fall at the beginning 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 showed some level of appreciation from $33.76 billion to $33.59 billion despite increases in the price of oil and fall of the Naira from 410.20/$1 to 410.17$1. Decease in the external reserve is due to the CBN policy on measure to stabilize naira rate against dollar.
   
  • 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.

 

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 increase in the rate of inflation.

 

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

 

Prices on domestic markets for LPG fluctuated slightly while the international markets for LPG fluctuated at an increasing rate in the same week

• The international prices of LPG reached its peak at the end of the week despite fluctuating at an increasing rate.
• There was initial increases in Depot prices while diminish set in at the middle of the week compared to the previous week.
• The narrowing disparities between prices at the depot level and those at the international level still persists.
• Price changes per kg of LPG in the week under review and in the past few weeks have increased in the week under review.
• 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. There is wide gap between the South East and South-west prices, this is due to its distance from the coastal region, has the 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 March 2021 reduced from 18.17 to 18.12 in April 2021 (Fig D). From 12.8 in July 2020, to 13.2 in August 2020. The composite food index reduced from 22.95 in March 2021 to 22.72 in April 2021, 20.57 in January 2021, 19.56 in December 2020, 15.48 percent in July 2020 compared to 15.18 percent in June 2020. The anticipated inflation rate for the month of May is 15.4%. The relax of Covid-19 rule might contribute to the change in the rate of inflation trend.
   
  • Exchange Rate and the LPG: Exchange rate value from the CBN official site moved fluctuated at a decreasing rate from N410.13 to 410.11/US.$1 in the previous week (Figure E). This followed the CBN action on naira Devaluation. 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 sloped downward from the beginning of the week till the middle of the week while appreciation set in from the same middle of the week till the end of the week (Figure F). This indicates that a risen price of crude oil in the international market results in increase in the cost of LPG. This signal a rise in price of the LPG market.
   
  • Foreign Reserves: As in the previous week, the Nigerian Gross Foreign Reserve decreased from $33.23 billion to $33.09 billion amid the devaluation and rising rate of the Naira at N410.12 to 410.20/US$1. This will signal to the investors and country's creditors the strength of naira and ability to repay debt.
   
  • 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 causes demand of goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts the LPG market  
    • 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 increase in the prices of goods and services       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

 

Prices on domestic markets for LPG fluctuated during the week while international market for LPG remain the same after an initial increase in the immediately preceding week

 

• The international prices of LPG rose and reached its peak in the beginning of the week but fell from the middle of the week and ended up on a flat rate note.
• Depot prices significantly fluctuated throughout the week.
• The market gaps between prices at the depot and those at the international level have begun to widen.
• 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: The rate of inflation has been gradually reducing over the last three months. It decreased from 18.17 in March 2021 to 18.12 in April 2021. (Fig D). This is due to the relief in the Covid-19's aftereffects. From 14.89 in November to 15.75 in December of the previous year. The composite food index increased to 21.79 percent in February 2021, 20.57 percent in January 2021, 19.56 percent in December 2020, and 15.48 percent in July 2020, up from 15.18 percent in June 2020. The upward rise in the rate of inflation in the past months is due to the border policies that targeted vital commodities. For the month of May, the expected inflation rate is 15.40 percent.

 

 

Exchange Rate and the LPG: In line with widening discrepancies in the parallel market, the Central Bank of Nigeria's (CBN) have adjusted the exchange rate (Figure E). Movement in the exchange rate along the same line was maintained at 410.16/US$1 throughout the previous week. One of the factors that influences 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 rose throughout the week (Figure F). The cost of LPG increases as the price of crude oil rises on the international market. This suggests a high LPG market price.

 

Foreign Reserves: The Nigerian Gross Foreign Reserve fell from $33.53 billion to $33.32 billion last week. Despite the reduction in the reserves, the exchange rate was pegged at 410.16 throughout the week even though crude oil prices continued to rise till the end of the week. Reduction in the reserve ought to appreciate the naira value, nevertheless, the exchange rate were stabilized against dollar during the 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 demand of goods and services to fall due to the full or partial lock-down effect. The implication of the Covid-19 contracts the LPG market

 

• 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.
• Nigerians are advised to take the AstraZeneca COVID-19 vaccine, manufactured by the Serum Institute of India to be immune against the virus.  

The prices in the weeks to come may rise due to increase in in the price of goods and services

 

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

 

 

The Punch reported that Nigeria exceeded its April production quota by 84,000 barrels per day, producing 1.6 million barrels per day instead of the 1.516 million barrels per day set by the Organization of Petroleum Exporting Countries and its partners.According to a new study released on Monday by S&P Global Platts, OPEC+ members exceeded their monthly quotas by 25.28 million barrels per day. Meanwhile, oil prices have fallen substantially following the gains gained on Monday as a result of panic purchasing in response to a pipeline collapse in Texas, USA.   Reuters reported on Wednesday that fuel shortages in the Southeast intensified as the shutdown of the country's major fuel pipeline network entered its sixth day, and Washington authorities promised to help alleviate supply concerns. In the previous week, a ransomware attack on the Colonial Pipeline halted 2.5 million barrels of petroleum shipments each day. The pipeline runs 5,500 miles (8,850 kilometers) from oil refineries on the Gulf Coast of the United States to consumers in the Mid-Atlantic and Southeast.   Reuters reported in line with the new trade manager of the firm stated on Friday, Petroleo Brasileiro SA (PETR4.SA), which provides the company a large flexibility in practice to avoid foreign market volatility when setting prices. As the Rio de Janeiro-based company is known, the period for which Petrobras calculates the international price parity of its fuels extended between three months and one year in 2020.     According to the Organization of Petroleum Exporting Countries (OPEC), compliance with the OPEC+ oil production cutbacks agreement totalled 122% in April, with production averaging 25.08 million barrels per day. OPEC stated in its monthly report released on Tuesday that crude oil output climbed mostly in Nigeria, Iran, and Saudi Arabia, while production declined notably in Venezuela, Libya, and Angola. Non-OPEC liquids output, which includes OPEC NGLs, decreased 0.18 million barrels per day in April compared to the previous month, to an average of 67.97 million barrels per day (down by 1.16 million barrels year on year).     Reeuter reported that the Australian government announced on Friday that its 2021-22 budget, which will be released on Tuesday, will include A$58.6 million ($45.3 million) to expand gas supply, storage, and pipeline capacity. The funding is in line with the government's effort for a gas-fueled economic recovery from the COVID-19 pandemic depression, with the goal of increasing gas supply, lowering manufacturing costs, and averting an impending gas shortage in the country's southern areas. In a statement, Energy Minister Angus Taylor said that the government will not sit back and allow the shortage to occur - the risk to the economy is too great."   Egypt is focusing its strategy on the upstream section to compensate for the natural drop in its oil production. The country aspires to be a centre for energy production and export to the sub-countries region's as well as the European market. Local companies Khalda Petroleum and Qarun Petroleum announced investments of $830 million and $252 million, respectively, in fiscal year 2021-2022 as part of a program to explore for oil and gas in Egypt's Western Desert. It will start in July 2021. During the time period, Khalda Petroleum drilled 87 wells, 35 for exploration and 52 for development or production. This is planned to produce 130,000 barrels of crude oil and condensate per day on average, as well as 630 million cubic feet of natural gas per day.     The Daily News reported that the government has given aside approximately 100 hectares of land in Mtwara Region for oil and gas investment prospects, the National Assembly was informed on Friday. Deputy Minister of Agriculture Hussein Bashe, speaking in Parliament on behalf of the Minister of Industry and Trade on Friday, said the government decision also prompted the implementation of the Mtwara Free Port Zone Construction Project, which includes the construction of a special section with berth and supply section for servicing investors in the oil and gas sector.   The Guardian reported that as part of initiatives to minimize deforestation, greenhouse emissions, and death from the use of solid fuels, the federal government is finalizing a plan to extend the equalization program to Liquefied Petroleum Gas (LPG). The country's growing demand for petrol has raised the level of equalization petroleum product from 30% to above 100%, according to Bobboi, while the dilemma of inadequate infrastructure, which prompted the agency's foundation 45 years ago, continues. The fund was established by Decree 9 of 1975 and amended by Decree 32 of 1989 with the primary responsibility of reimbursing petroleum products marketing organizations for any losses incurred purely and exclusively as a result of the selling of petroleum products at uniform pricing across 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 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