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|Weekly Lpg Insider Report by kiakiagas: 3:05pm On Aug 17, 2020|
|Re: Weekly Lpg Insider Report by kiakiagas: 3:08pm On Aug 17, 2020|
Prices have shown a slight rise in the international and domestic markets for LPG in the immediately preceding week .
Key Developments in Nigeria's LPG Market
• International (Mont Belvieu) prices of LPG started on a rising note and ended on a slightly lower note compared to the same day in the previous week.
• Prices of LPG at the depot level showed a slightly different trend compared to the previous week: the price difference between the Mont Belvieu and depot prices grew narrower through the week under review.
• The difference between prices per kg of LPG at the depots and retail prices in Nigeria are narrowing. Like the depot prices, retail prices fell through the week.
• Regional disparities in the retail prices of LPG within the country continue to persist.
|Re: Weekly Lpg Insider Report by kiakiagas: 3:10pm On Aug 17, 2020|
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.
|Re: Weekly Lpg Insider Report by kiakiagas: 3:11pm On Aug 17, 2020|
Macroeconomics & the LPG Market
• The exchange value of the naira to the US. $ has remained stable at the new rate of N381 to US.$1 throughout the week. (Figure D). However, the Central Bank of Nigeria (CBN) is yet to formally reflect the new rate in their official website.
• The foreign reserve recorded a slight rise away from the continuous drop it has witnessed in the previous week. The slight rise witnessed in the size of Nigeria's foreign reserve does not necessarily reflect a firming up of the naria against the US. dollar.
• 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.
• The removal of the restriction on inter-state movement due to the COVID-19 is leading to an initial rise in prices for LPG at the depot level
• Prices of crude oil in the international market in the week under review showed an unstable trend, after an initial rise (Figure E).
|Re: Weekly Lpg Insider Report by kiakiagas: 3:12pm On Aug 17, 2020|
Outlook: Coming Weeks
• We expect a visible growth in the price of LPG within the domestic economy as the naira weakens against the US. Dollar.
• We also expect a more than proportionate rise in LPG prices at the retails level compared to the depot/international prices in the coming weeks.
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 firstname.lastname@example.org or Whatsapp: +2348085269328
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