.

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 Development in Nigeria.

Prices of LPG in the international market ended at a lower price compared to the price at the beginning of the week.
Week-on-week differences in the price of LPG at the depot level have not changed much in the week under review.
The difference between prices per kg of LPG at the depots in Nigeria and prices at the international market are becoming narrower as was recorded from the previous few weeks.
Regional disparities in the retail prices of LPG within the country continue to persist.

Regional Disparity in Retail.
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 Condition and 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). Reverses have also slightly fallen in week under review leaving some speculations about what become sof the value of the naira.
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 July 12.8 June at 12.6% from the 12.4% recorded in May 2020) has implications for the price of LPG across the country.
There is a general rise in prices of goods including LPG as the current fuel price hike starts to trickle down to through the value chain.
Prices of crude oil in the international market in the week under review is continuing a downward trend from what was recorded last week. (Figure E).

Outlook: Coming Weeks

The current exchange rate loses of the naira to the U.S dollar may lead to a rise in prices in the weeks to come.

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