Weekly LPG Mont Belvieu And Nigerian LPG Price Review May 9th 2025

By Ehi Okoduwa ــ Last Update 11 May 2025

Weekly Mont Belvieu Propane-Butane Price Overview: May 9th, 2025

05/05/2025: Propane $366.3 / Butane $407.1

06/05/2025: Propane $365.4 / Butane $401.8

07/05/2025: Propane $357.2 / Butane $382.4

08/05/2025: Propane $365.5 / Butane $384.6

09/05/2025: Propane $372.8 / Butane $385.2

Propane Prices Fall Below Butane for the First Time Since February 2025

Last week witnessed a sharp correction in propane prices, which dropped by over $80/MT, reflecting a return to bearish fundamentals after April's price surge. The decline was most pronounced mid-week, possibly triggered by lower export demand and reduced heating fuel consumption, due to lower seasonal demand or a cooldown in Asia-bound export demand. Prices closed at an average weekly price of $365.4/MT, a massive 18.4% decrease in price against the previous week's average of $447.6/MT.

Butane, while more stable, also registered a noticeable decline of $29/MT, retracing from its recent highs. The relative resilience of butane may be attributed to seasonal gasoline blending demand and tighter regional stockpiles. Prices closed at $392.2/MT, a 6.9% decrease against the previous week's average price of $421.1/MT.

LPG Price trend and Outlook:

With propane prices slipping below $370/MT, the outlook remains weak to neutral, unless export volumes or petrochemical demand improve. Butane’s trend may remain comparatively firmer, but is still exposed to the general softness (oversupply) in energy markets.

Short-term fundamentals suggest: Propane likely to remain under pressure due to low seasonal demand and oversupply, while Butane may find support from gasoline blending demand into early summer.

Crude oil prices rises with some optimism.

WTI closed at $60.67 higher than the previous week's price of $58.34 while Brent closed at $63.55 higher than $61.30.

Prices climbed steadily last week, buoyed by renewed optimism in global macroeconomic conditions, including:

Positive signals from US-China trade discussions, with reports indicating potential tariff rollbacks on certain categories. Also, a framework agreement between the US and UK on energy and security cooperation, improving market sentiment.

Dangote’s Return Shakes Up the Market

LPG depot prices, which had maintained an upward trajectory, experienced a sharp shift following the re-entry of Dangote Refinery into the market. Prior to Dangote's return, depot prices hovered around ₦19.2 million per 20MT. However, sources reported a drop to approximately ₦18.5 million in Apapa, driven by Dangote’s pricing, which trended around ₦18 million per 20MT.

In contrast, the South-South region remains largely unaffected, as ongoing supply constraints persist. Stockgap depot’s three-week maintenance shutdown has deepened the shortfall, keeping prices elevated.

Given the current under-supplied conditions, prices are expected to remain stable at current levels or rebound in the near term.

LPG Retail Prices remain stable.

LPG Retail prices remain stable at N15,000.00 per 12.5kg in Lekki.

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