Foreign trade grows

EDL's registered fuel imports inflate Lebanon's oil bill in first quarter

Lebanon’s foreign trade sector saw improved activity in the first quarter of this year, while the deficit was 33 percent higher than it was in the same period of 2011.

Imports totaled $6 billion, up from $4.6 billion last year. Exports stood at $1.2 billion, up from $955 million.

Imports were driven up by a $2.3 billion oil bill, which grew by 130 percent on a yearly basis. The volume of all petroleum imports rose by around 50 percent to 2.5 million tons.
Imports of fuel oil and gas oil (diesel) rose to 1.9 million tons, up by more than100 percent year-on-year. These commodities are mainly imported by the public sector and used by the state power utility (EDL).

According to the Ministry of Finance, EDL’s “registered fuel imports” amounted to 1.5 million tons, up from 500,000 tons in the same period last year. These imports are usually admitted into the country under ‘special permission’ and are not registered upon their arrival at the port. That was not the case in 2012. As such, the one million ton difference, is only the result of a different import procedure.

Imports of foodstuff totaled $320 million, up from $279 million. The volume of food imports rose by around 33,000 tons.

Imports of pearls and precious stones (including gold) totaled $456 million, up by 40 percent year-on-year. The rise is attributed to the increase in wrought gold and precious stones prices and to higher demand from professionals.

On the exports side, the value of precious stone exports rose by 85 percent year-on-year to $541 million, accounting for 47 percent of the bill. “There were several jewelry exhibitions abroad during the first three months of the year,” said Elias Hakim, vice-president of the Syndicate of Jewelers in Lebanon. The rise is also explained by the global increase in the prices of these commodities. Exports of prepared foodstuffs totaled $97 million at end-March this year, up from $88 million last year. Exports of base metals and metal articles totaled $125 million, down by 15 percent. Exports of machinery and electrical instruments stood at $116 million in 2012, down by eight percent.

Reported by Hanadi Chami