Prices have shown a slight rise in the international and domestic markets for LPG in the immediately preceding week
- International (Mont Belvieu) prices of LPG ended on a slightly higher note in the week under review.
- Prices of LPG at the depot level in the week under review are not too different from what was recorded in the previous week.
- Prices per kg of LPG at the depots in Nigeria are still well above the prices at the international market. Prices per kg of LPG also increased slightly within the week. However, the rise in prices for LPG at the depot level was higher relatively.
- 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. 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.
- The exchange value of the naira to the US. $ was remained stable at N380 to US.$1 throughout the week (Figure D).
- 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 a marked downward trend, after an initial rise (Figure E).
- The continuous oversupply situation in the international market for Natural gas will likely lead to a continuous drop in prices in the weeks to come.
- The weeks to come may witness a gradual and slight drop in inflation as the army of liquidity facilities deployed by the CBN start to have a visible impact on economic activities as the country reaches its first month of the re-opened economy.