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In the immediately preceding week, prices on the foreign and domestic markets for LPG saw a slight increase, with significant fluctuations in the international market.

Key Development in Nigeria's LPG Market
The international prices of LPG fluctuated throughout the week. However, it ended at a lower price compared to the price on the same day in the previous week.
Depot prices have shown some appreciation compared to the previous week.
There is consistency in the narrowing of the price differences between prices at the depot level and those at the international level.
Price changes per kg of LPG in the week under review and in the past few weeks have remained within the limited range.
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. The South East region has the highest prices due to distance from the coastal regions.

Macroeconomics Condition and the LPG Market
Exchange rate value still persistent at N380 to US.$1 throughout the week (Figure D), as disparities continue to widen in the parallel market.
As in the previous week, the Nigerian Foreign Reserve continues to slightly fall despite the devaluation and pegging of the Naira at N380 to US$1, the slight decrease has been persistent for four weeks.
For the gas market, the Purchasing Managers Index (PMI) of the CBN reports a decline in November for new orders in the Electricity, gas, steam & air conditioning supply category while Business Activities and employment & inventory contracted in the same month. The declining trend in Business Activities and employment & inventory signal contraction in demand in the respective value chains.
Inflation remains high. The persistent rise in inflation in the past more than 11 months (in October 14.23, September 13.7%, August 13.2%, July 12.8%, June at 12.6% from the 12.4% recorded in May 2020) is increasingly being refleted in higher price of LPG across the country. More importantly, the composite food index rose to 17.38 in October from 16.16% in September and 16.0% in August, 15.48% in July 2020 compared to 15.18% in June 2020.
The Prices of crude oil in the international market continue to fluctuate throughout the week but ended up incresing at the end of the week (Figure E).

Outlook: Coming Weeks

The prices in the weeks to come may rise due to the unrest situation of the country in the previous week.

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