Weekly Mont Belvieu Propane-Butane price review July 22nd, 2023
Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (4.6% and 6% up respectively on the weekly average):
17th July: 314.2; 338.1
18th July: 331.5; 349.9
19th July: 340.9; 362.1
20th July: 344.2; 361.6
21st July: 343.5; 359.9
LPG prices rise by more than 30% since June; from a low of 270 USD/MT in June to 359.9 currently.
Butane price rise continues with a significant average increase of 6%, while Propane price increased by 4.6% on the weekly average. We can say that the upward trend is confirmed. The expected price correction didn't happen - we could expect to hit 400 USD before the end of the summer.
We have had a very hot summer which normally should drop fuel demand, but the very hot climate had led to a demand for fuel for cooling, which has put stress on Energy demand, thereby jerking up prices; this factor ( very hot summer), coupled with the cut in crude productions by Saudi and Russia has led to a sustained increase in Energy prices.
Local LPG prices in Nigeria
Local depot prices continue to trend upwards as international LPG prices and Naira/USD FX rate continue to go against the Naira. Depot prices sold for 10.4 Million per 20MT in Apapa to 11 million at Prudent Energy and Shafa depots in the South-South.
On the retail side, there are indications of LPG prices going for over N8000 per 12.5kg in most places nationwide. But a certain Gasland confirmed on Twitter to be selling LPG -cooking gas below N7000 per 12.5kg around Ibadan and Lagos areas.