Weekly Mont Belvieu Propane-Butane Price Review January 5th 2024

By Godwin Okoduwa ــ Last Update 07 January 2024

Weekly Mont Belvieu Propane-Butane price review January 5th, 2024

LPG prices close each day during the week for Propane and Butane respectively.

2nd January365.0256456.6806

3rd January358.8388456.6806

4th January359.1644466.0238

5th January364.3744460.9275

Market Update - LPG Prices rebounds lower

Our market assessment for the first week of 2024 came with a surprise LPG prices rebound; lower than it was two weeks ago. While Propane prices ended with an average week decrease of -3.2%, Butane prices ended with an average week price decrease of -5.2%, sending prices farther away from the 500 USD mark. This decrease in LPG prices helps cushion the recent rising trend of the USD/Naira exchange rate.

Oil Prices and Market Dynamics:

News about the USD oil commodities stock has kept prices subdued, but the middle-east tensions have kept oil prices in the 70s range. the OPEC+ group plans to meet in early February to implement the sustained Production -cuts which is meant to keep oil prices up. If oil prices remain in the 70s, we are going to have more Shale oil development which would lead to huge stockpiles from America. Currently, the US is the leading exporter of LNG globally, with an annual total of 88.9 Million tons. There is a likelihood that the stockpiles from the US will send oil and gas prices very low this year.

Nigeria LPG Depots:

In Nigeria, LPG depot prices announced LPG prices with confusing disparities; While the South-South depot recorded 16 Million plus per 20MT prices, Lagos depots recorded under 15 million naira per 20MT. When the calculation is made for the landing cost of LPG, the '16 million' price seems justified; therefore the 14.5 million in Apapa in particular may just be discounted pricing. We hope to unravel this disparity and how the market is responding to it.

Retail Prices:

According to our monthly retail price report, by December, prices took a promising turn, dropping to an average of N12,253.00 per 12.5kg, which signifies a 7.10% decrease in prices from November; marking a positive shift in affordability and accessibility for consumers. Currently, a 12.5kg LPG cylinder is filled for 11,500.00 in Lekki - Lagos.

Please feel free to reach out if you have any questions or require a more in-depth analysis of these market developments. Our team is committed to providing the insights and guidance necessary for effectively navigating this dynamic market.