Higher Transfers to EDL in 2017 as Average Oil Prices Increased
According to the Ministry of Finance, transfers to EDL reached $1.33B by the end of 2017, substantially higher than the $927M transferred over the same period in 2016.
This decline mainly resulted from the 37.4% yearly increase in payments to fuel and oil gas suppliers KPC and Sonatrach, which reached $1.26B by the end of 2017. In fact, the volumes of imported fuel rose by 15.49%, while imports of gas oils fell by a yearly 10.66% during the year. Moreover, the rise in payments can be attributed to the 23.4% rise in average crude oil prices to $54.12/barrel.
Furthermore, EDL’s contribution to the oil bill fell to 2% in 2017, up from its previous share of 5.6% in the period January-December 2016.
Out of the government’s primary expenditures, which reached $10.20B in the period Jan-Dec 2017, EDL transfers represented a share of 13% compared to a lower share of 9.4% by December 2016.
Contribution of EDL in the Total Oil Bill
Source: MoF
