Treasury transfers
to EDL almost flat

EDL has only paid 2.5 percent of the oil bill

Treasury transfers to Electricité du Liban (EDL) totaled $1.6 billion in the first nine months of 2013. Reimbursement for gas and fuel purchases formed 97 percent of the overall transfers, according to a statement by the Ministry of Finance.

Transfers to EDL were lower by $53 million, than in 2012. This is the result of a decrease in payments to oil suppliers, Kuwaiti KPC and Algerian Sonatrach, by $43 million and a decrease in debt service payments. This is driven by the decrease in the total volume of energy imports and lower average crude oil prices.

The average price of crude oil corresponding to payments made in the first nine months of 2013 was three percent lower than the same period, last year. This is due to the fact that payments reflect energy consumption over the period of May 2012 and September 2013, when the average weighted price of crude oil was at $109.5 per barrel. The January-September 2012 payments reflected consumption over the period of May 2011 and April 2012, when crude oil prices averaged $113.4 per barrel.

EDL contributed $40 million, or 2.5 percent, of the total oil bill, compared to $60 million the same period last year.

Treasury transfers to EDL form the third largest expenditure item. Transfers to EDL constituted 22.3 percent of primary expenditures in 2013, compared to 27 percent in 2012.