Weekly Mont Belvieu Propane-Butane Price Review December 29th 2023

By Godwin Okoduwa ــ Last Update 01 January 2024

Weekly Mont Belvieu Propane-Butane Price Review - December 29th, 2023

In this week's market review for Mont Belvieu Propane and Butane prices, we present the LPG price closing figures for each day of the week ending December 29th, 2023:

DatePropane Price (USD)Butane Price (USD)December 26th360.1479.6December 27th365.4476.8December 28th371.9487.0December 29th387.2498.3

Market Update - LPG Prices Return to the Upward Trend

Our analysis of the final week of 2023 indicates a resurgence in the upward trend, witnessing an average weekly price increase of 6% and 2% for Propane and Butane, respectively, by December 29th, 2023. Notably, Butane prices approach the critical 500 USD mark, a pivotal threshold that may trigger a significant uptick in prices.

Oil Prices and Market Dynamics

The prospect of increased shale oil production could exert downward pressure on prices in the short term, potentially driving oil prices to 60 USD/barrel if sustained. Meanwhile, geopolitical factors such as the Ukraine conflict, sanctions on Russia, and Houthi rebel disturbances could contribute to upward price movements. Our monitoring of these developments remains vigilant.

Nigeria LPG Depots

In Nigeria, LPG depot prices in Lagos have held steady in the range of 14.7 Million Naira per 20MT. Reports suggest some depots have even lowered prices to 14.5 Million Naira per 20MT during the final week of 2023. We anticipate upward price movements as international prices rise and foreign exchange pressures intensify.

Retail Prices

Our anticipation of a significant decrease in retail prices nationwide is substantiated by recent trends. Our November survey reported an average price of ₦13,190 for a 12.5kg cylinder of cooking gas in Nigeria. However, by December, prices exhibited a promising decrease, averaging ₦12,253. This marks a substantial 7.10% reduction in prices from November to December, reflecting a positive shift in affordability and accessibility for consumers.

Feel free to reach out if you have any inquiries or require a more detailed analysis of these market developments. Our team is dedicated to providing the insights and guidance necessary for effectively navigating this dynamic market.