According to the Ministry of Finance (MoF), total transfers to EDL stood at $438.82M by July 2016, 40.4% lower than its level in the same period of 2015. In details, $429.42M are transferred for the reimbursement of KPC and Sonartach, while the remaining $9.40M are transferred for debt services.
This fall in value can be justified by the 40.8% year-on-year (y-o-y) decrease in payments to fuel and oil gas suppliers KPC and Sonatrach to $429.43M by July 2016. The lower reimbursement for gas and fuel purchase was due to the lower average prices of crude oil that plunged 29.55% y-o-y to $40.40/barrel by July 2016, compared to $57.35/barrel in 2015. As for quantity, the volume of imported fuel oil rose by 5.27%, while the volume of gas oil decreased by 8.61% y-o-y.
Moreover, EDL’s contribution to the oil bill increased to 7.3% of the $463.03M oil bill, in the first 7 months of 2016, compared to 2.2% of a higher oil bill of $741.62 in the same period of 2015.
EDL transfers represented a share of 7.8% of the government’s primary expenditures, which reached $5.18B in the period Jan-Jul 2016, compared to a share of 14.20% of $4.46B by July 2015.
Contribution of EDL in the Total Oil Bill by July
Source: MoF