According to the Ministry of Finance, transfers to EDL witnessed a significant yearly increase of 32.26% to reach $ 1.76B by December 2018.
In details “Payments to fuel and oil gas suppliers KPC and SPC” (which grasped 98.92% of the total amount) climbed yearly by 38.37% to $1.75B by the end of 2018. This significant rise can be mainly attributed to the 28.34% yearly increase in average prices of crude oil to $71.69 /barrel by December 2018 and higher Volume of imported fuel oil and gas oil by 5.50% and 4.80% respectively, during the same period. Moreover, Transfers to Electricity Syria during 2018 dropped to $12.67M in compared to $62.34M in 2017.
Furthermore, EDL contributed 0.3% from a total oil bill of $1.74B in Jan‐December 2018, down from its previous share of 2% from a total oil bill of $1.28B, in same period of 2017.
Worth mentioning that Lebanon’s fiscal deficit expanded from $3.75B by December 2017 to $6.25B (10.87% of GDP) by December 2018 and EDL transfers represented a share of 14.4% of the government’s primary expenditures, which reached $12.18B during 2018, compared to a share of 13% by December 2017. In its new budget the Lebanese Cabinet has approved a plan to upgrade the electricity sector in order to narrow its deficit by improving production and distribution, and raising tariffs.
Contribution of EDL in the Total Oil Bill by December