Business News of Tue, 17 Jan 20171
2016 First half petroleum revenue drops by 50%
Ghana’s revenue from the petroleum sector for the first half of last year dropped by over 50%.
The figure declined from US$274.47 million in 2015 to US$126.41 million for the same period last year.
This translates to a 55% reduction in revenues when compared to total petroleum receipts during the same period in 2015 (US$274.47 million) but 4% better than revenues received during the second half of 2015.
This was revealed in the 2016 Public Interest Accountability Committee (PIAC) report.
The report also revealed that the total half year receipts from the petroleum sector represented only 50.35% of the projected half year revenue of US$251.05 million.
The Chairman for PIAC, Joseph Winful explained to Citi Business News the drop in prices is as a result of a fall in prices of petroleum products.
“So we know for a fact that in 2015 and 2014 oil prices were high and then that has been the cause of this depreciation in our revenues from petroleum.
So it’s been dictated by the fall in prices of petroleum and petroleum products and that is the main reason for this slump in revenues,” he said.
“The only thing is with the limited resource or the reduced resource it means we have to be very prudent and ensure that we get the best out of the reduced revenue.” he added.
As part of recommendations, the PIAC reports further proposed that the Ghana National Petroleum Commission (GNPC) desist from financing infrastructure projects with funds allocated to it from petroleum revenues.
It proposes that any outstanding payment(s) to be made in respect of the Western Corridor Road project must be paid from the allocations to the Roads and other Infrastructure priority areas.