Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (6.8% and 1.7% down respectively on the weekly average):
28th November: 407.7; 427.2
29th November: 405.9; 429.2
30th November: 404.3; 433.2
1st December: 392.7; 447.3
2nd December: 368.0; 440.0
LPG Butane prices closed nearly at the same level, closing at 440 USD/MT against the previous week's close of 443 USD/MT. But propane prices this time had a significant drop of 12%, sustaining the trend last week, closing at 368 USD/MT ( lowest since 24th of December 2020), against the previous week's close of 417.1 USD/MT.
Factors affecting price drop include the China COVID-19 Lockdown and the issues around it, the crude oil price cap at 60 USD per barrel, by the EU, on Russian oil, and of course ease of restrictions to other fuel sources. Factors that could lead to a reversal of price trend are; Limited availability of oil and gas in Europe as a result of restricted supplies from Russia, increased oil and gas demand from the winter temperature, and a cut in oil production among OPEC members when they meet in December.
Local LPG prices in Nigeria
On the local side, prices fell slightly and peaked at 12.4 Million Naira per 20MT at NAVGAS depot (Apapa) and Prudent depot ( Oghara ), with most depots selling between 12.2 to 12.3 Million Naira per 20MT. Prices are expected to go lower as a result of the decreasing international prices.
LPG retail prices at the LPG plants should remain within the same prevailing levels; between N9,000.00 to 10,000.00 nationwide.