According to the Ministry of Finance, transfers to EDL rose by LBP 552.72B ($366.65M) to stand at LBP 1,627B ($1.08B), compared to LBP 1,074B ($712M).
This rise mainly resulted from the increase in payments to fuel and oil gas suppliers KPC and Sonatrach, which reached $1.04B by October 2017. In fact, the volumes of imported fuel rose by 21.18%, while that of gas oils dropped by a yearly 9.27%. the increase is mainly due to the rising global oil prices, noting that the average price of crude oil rose by 22.73% y-o-y to $52.26/barrel by October 2017, compared to $42.58, during the same period in 2016.
Furthermore, EDL’s contribution to the oil bill decreased to 2% in the first 10 months of 2017, down from its previous share of 6.6% by October 2016.
Out of the government’s primary expenditures, which reached $6.96B in the period Jan-Oct 2017, EDL transfers represented a share of 13.4% of the total compared to a share of 9% by October 2016.
Contribution of EDL out of the total oil bill