Our assessment for last week daily Mont Belvieu propane and butane in USD/mt (5% and 2.8% down respectively on weekly average):
LPG Butane prices closed by about 0.58% lower, closing at 443 USD/MT against the previous week's close of 445.6 USD/MT. Propane prices followed the same trend, but closed significantly lower at 417.1 USD/MT ( 4.33%) against the previous week's close of 436 USD/MT. This make it the third consecutive week LPG prices are closing lower, even as the weather gets colder and fuel demand more likely to increase.
LPG prices may have fallen as a result of continued cut in fuel demand from China as a result of the COVID19 restrictions due to increasing cases of infection, the G7 Oil price cap from December 5th ,building US oil inventories , easing of trade restrictions on Venezuela's oil. Media reports suggest the G7-proposed oil price cap level would be in the range of 65-70 per barrel, which is much lower than current levels and suggests that gas prices may follow a downward trend into the Christmas season.
Local LPG prices in Nigeria
On the local side, prices remained peaked at 12.5 Million Naira per 20MT at NAVGAS depot , 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. The market is also currently wet with LPG.
LPG retail prices at the LPG plants should remain within the same prevailing levels; between N9,000.00 to 10,000.00 nationwide.