Prices are beginning to rise in the international market and has remained stable in the domestic market for LPG in the immediately preceding week .

Key Developments in Nigeria's LPG Market
• International prices of LPG maintained a rise throughout the week under review.
• Compared to the previous week, the Mont Belvieu prices ended nearly at the same price. Depot prices have remained fairly consistent in the midst of these changes.
• Prices per kg of LPG at the depots in Nigeria are still over double the prices at the international market, similar to what we have seen in the previous weeks.
• Prices for LPG in the week under review and in the past few weeks have remained within the limited range have not been
• Regional disparities in the retail prices of LPG within the country continue to persist.

Regional Disparity in Retail Prices
Regional disparity in the prices of LPG across the country has been a regular feature of the Nigerian LPG market. Though the South-south geopolitical zone hosts the great majority of depots in the country due to its proximity to the ocean, prices have been highest in the region.

Macroeconomics & the LPG Market
• The exchange value of the naira to the US. $ has remained at the pegged price of N380 to US.$1 throughout the week (Figure D).
• For the gas market, the Purchasing Managers Index(PMI) of the CBN report growing Business Activities, and New Orders but declining employment and inventory for the month of July 2020 compared to June. The growing Business Activities, and New Orders come from the recently relaxed lock-down due to the COVID-19 while declining inventory and New Employment seem to reflect a strategy to avoid risks.
• Inflation remains high. The persistent rise in inflation in the past nearly 11 months (in June at 12.6% from the 12.4% recorded in May 2020) has implications for the price of LPG across the country.
• The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) maintained its monetary policy rate at 12.50%. The apex regulatory body is adopting a "stand-aloof" approach so as to observe the array of liquidity facilities that have been deployed since the COVID-19 pandemic to cushion Covid-19’s shock.
• Prices of crude oil in the international market in the week under review showed an erratic pattern but ending on a lower note (Figure E).

Outlook: Coming Weeks
We maintain our previous outlook expectation that demand may slightly drop as the lockdown progressively eases movement and allows people to spend more time at outside of the home. While the drop in household consumption might be offset by consumption by business entities, this may not be a perfect off-set.

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Thanks so much for posting this awesome report. I sincerely hope this continue in the coming weeks