According to the Ministry of Finance, transfers to EDL stood at $675.49M by September 2020, dropping by 40.4% compared to the same period last year. This was mainly due to lower payments to KPC and Sonatrach for fuel oil purchases, and lower debt services.
In details “Payments to fuel and oil gas suppliers KPC and SPC”, constituting 99.73% of total transfers, slumped yearly by 44.5% to $673.89M by September 2020, as the volumes of fuel and gas oil imported decreased by 21.60% and 13.13%, respectively. Worth mentioning that the average crude oil price retreated annually by 36.84% to 41$/barrel in the first 9 months of 2020.
EDL contributed 0.08% of the total Jan-Sept 2020 oil bill, higher by 0.36% during the same period last year, out of a higher bill of $1.13B. In nominal terms, EDL’s contribution amounted to $563,847 by September 2020, compared to $4.03M during the same period of 2019.
EDL transfers represented a share of 8.3% of the government’s primary expenditures (excluding interest payments), which reached $675.29M by September 2020, compared to a higher share of 13.7% last year.
Just to add that we are writing this article on May 2021, and the current situation is very bad, as Lebanon’s lights may go off this month with the failure of government to secure the payments required to imports the fuel. Lebanese policymakers must find an immediate solution to this disaster or darkness will be over Lebanon for the summer 2021.
EDL Contribution from Total Oil Bill by September 2020