Weekly Mont Belvieu Propane – Butane prices – September 10th, 2021
Our assessment for last week daily Mont Belvieu propane and butane in USD/mt (2.8% and 0.7% up respectively on weekly average):
6th September: Bank holiday
7th September: 620.0; 654.0
8th September: 619.0; 638.2
9th September: 626.3; 638.2
10th September: 637.2; 645.0
LPG Butane (Mont Belvieu) prices closed below the previous week’s close; the expected retracement happened – closing at 645 USD/MT from 664MT.
On the local side, depots prices increased to 8.6 Million during the week. We are already experiencing 9.25 Million /20MT as seen in a depot ( this publication is late) – Reason for the massive increase may be connected to the US Dollar/ Naira Exchange rate. LPG Import into Nigeria is exposed to Black Market FX rates and so prices would be affected when there is a shift in the black market.
Except some concession is given to LPG importers, the instability in the Nigerian FX market would continue to move LPG prices higher even when prices are down internationally.
Recent PPPRA figures showed a decrease in LPG volumes for the month of August; data shows that the decrease was due to a reduction in volumes supplied by NLNG. There was a marginal increase in LPG import volumes despite the high LPG prices.
Retail prices for cooking gas continue to increase as LPG sell for N6,000 to over N7,000 per 12.5kg in locations nationwide.A retail price analysis on LPG would follow soon.