According to the Ministry of Finance, transfers to EDL witnessed a significant yearly drop of 26.17% to reach $ 65.85M in January 2019.
In details “Payments to fuel and oil gas suppliers KPC and SPC” (which grasped 98.64% of the total amount) decreased yearly by 26.40% to $64.95B in January 2019. This significant rise can be mainly attributed to the 13.99% yearly retreat in average prices of crude oil to $59.41 /barrel in the first month of 2019 and lower Volume of imported fuel oil by 100% in January 2019 comparing to the same period last year. However, the volume of imported Gas oil increased yearly by 120% in January 2019.
Furthermore, EDL contributed 0.2% from a total oil bill of $65M in Jan 2019, down from its previous share of 0.43% from a total oil bill of $88M, in same period of 2018.
Worth mentioning that Lebanon’s fiscal deficit (cash basis) narrowed from $378.91M in January 2018 to $72.83M in January 2019 and EDL transfers represented a share of 14.17% of the government’s primary expenditures, which reached $800.24M in January 2019, compared to a share of 8.54% in Jan 2018. 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 in January