Lower Transfers to EDL in 2016 as Average Oil Prices Dropped

According to the Ministry of Finance, transfers to EDL reached $926M by the end of 2016, substantially lower than the $1.13B transferred over the same period in 2015.

This decline mainly resulted from the 18.10% yearly decrease in payments to fuel and oil gas suppliers KPC and Sonatrach, which reached $913M by the end of 2016. In fact, although the volumes of imported fuel and gas oils rose over the year, the overall yearly payments reflected the fall of global oil prices, where the average price of crude oil dropped 15% y-o-y in 2016 to $44.13/barrel. However, the amount of fuel oil imported increased by a yearly 16.26%, while the amount of Gas oil imported slightly fell by a yearly 2.36%.

Furthermore, EDL’s contribution to the oil bill increased to 5.6% in 2016, up from its previous share of 4.7% in the period January-December 2015.

Out of the government’s primary expenditures, which reached  $9.90B in the period Jan-Dec 2016, EDL transfers represented a share of 9.4% compared to a higher share of 12.8% by December 2015.

Contribution of EDL in the Total Oil Bill

Lower Transfers to EDL in 2016 as Average Oil Prices Dropped

Source: MoF

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