Weekly Mont Belvieu Propane-Butane price review July 28th, 2023
Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (2.5% and 4% up respectively on the weekly average):
24th July: 331.8; 353.8
25th July: 329.9; 356.3
26th July: 338.7; 362.1
27th July: 354.6; 381.4
28th July: 361.4; 389.0
Butane price rise continues with a significant average increase of 4%, while Propane price increased by 2.5 on the weekly average. We expect the upward trend to continue in light of the recent positive US economy report and continued oil production cuts. At 389 USD/MT, we may hit 400 USD/MT in no time.
Crude oil prices crossed the 80 USD per barrel mark, last week and could go on to hit 90 USD with the current momentum; a sustained bullish price trend for LPG is the most expected as we journey into the last months of the year.
Local LPG prices in Nigeria
Local depot prices maintained a ranging trend during the week, with the highest price at 11 Million per 20MT at NAVGAS and the lowest at 10.7 million per 20 MT at Kwale Hydro Carbon, Kwale. The factors that keep LPG prices high at still at play; Higher FX rates, high international LPG prices, and of course insufficient local supply, as mentioned in a related blog post ( SEE LINK).
On the retail side, there are indications that LPG prices are still in the range of N8000 per 12.5kg in most places nationwide.