Bearish Oil Prices Caused Transfers to EDL to Decrease by 56.6% by February 2016

According to the Ministry of Finance, transfers to EDL reached $90.53M in the first 2 months of 2016, 56.6% lower than its level in the same period of 2015.

This decline mainly resulted from the 57.4% yearly decrease in payments to fuel and oil gas suppliers KPC and Sonatrach, which reached $85.81M by February 2016. In fact, the volumes of imported fuel and gas oils decreased by 10.11% and 2.11% y-o-y, respectively.  The overall yearly payments mirrored the bearish trend of global oil prices, noting that the average price of crude oil dropped 40.11% y-o-y in 2015 to $31.45/barrel by February 2016.

Furthermore, EDL’s contribution to the oil bill increased to 9.8% in the first 2 months of 2016, up from its previous share of 2.1% in same period of 2015.

Out of the government’s primary expenditures, which reached  $1.99B in the period Jan-Feb 2016, EDL transfers represented a share of 4.5% compared to a share of 14.6% by February 2015.

Contribution of EDL in the Total Oil Bill by February

 Bearish Oil Prices Caused Transfers to EDL to Decrease by 56.6% by February 2016

Source: MoF

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