Low oil prices don’t hurt Ghana – Kwarteng

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wuntira 9 years ago

I always thought Kwarteng was a level-headed economist. As for Atik Mohammed I can pardon him. He simply lacks the capacity to understand the issues.

I always thought Kwarteng was a level-headed economist. As for Atik Mohammed I can pardon him. He simply lacks the capacity to understand the issues.
KAFUI 9 years ago

Since Ghana is a net importer of crude oil and products, it is very true that we shall gain far more in reduced oil price than we shall lose in reduced crude price. This is simple arithmetic and not rocket science. Wuntira is ...
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Since Ghana is a net importer of crude oil and products, it is very true that we shall gain far more in reduced oil price than we shall lose in reduced crude price. This is simple arithmetic and not rocket science. Wuntira is rather IGNORANT!!!
USA 9 years ago

If export is affected by the drop in crud oil, is export not part of the economy? Whats wrong with you so call NPP NPs

If export is affected by the drop in crud oil, is export not part of the economy? Whats wrong with you so call NPP NPs
Nii Ayiteytsebi 9 years ago

Kwarteng forgets that there are many factors apart from the oil issue that had caused Ghana to be in the economic turmoil that we see today. Baically we have to consider all our exports and the income they bring in before com ...
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Kwarteng forgets that there are many factors apart from the oil issue that had caused Ghana to be in the economic turmoil that we see today. Baically we have to consider all our exports and the income they bring in before coming out with controversial comments.

The issue of oil is really a factor which had affected us brutally, a point that every sincere politician will sincerely acknowledge that without any fears, but I think it is only the village oriented Obuasi man and the other frustrated Mornah who are clothed so much with tribal and political bigotry who could make statements like what we hear from them.

Besides all things we are very much aware of the fallen rices of cocoa and gold on the international market and thus if there had been down trend with the oil prices there is surety that our economy could be shaken by this change in the oil price in the negative. Consequently there ought to be negative signs in our econmic hence what every genuine politician can say is that the downward trend of the oil prices had affected us negatively. If so where is the argument?
Joe 9 years ago

Shocking analysis indeed. The exports do not just earn us forex but income as well. Royalty and corporate tax earnings by the state are linked to the price of crude. The higher the price the more royalties and to some extent ...
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Shocking analysis indeed. The exports do not just earn us forex but income as well. Royalty and corporate tax earnings by the state are linked to the price of crude. The higher the price the more royalties and to some extent higher corporate taxes government earns. Imports on the other hand are paid for by consumers via the retail outlets and commercial consumers.a d do not account as expenditures on the part of government. So while the net argument holds for the impact on balance of payment position, a lower price affects the income of the government. So basic!
Kiki 9 years ago

Thanks Joe, however, the question is whether the Multinational Corporations 8n Ghana are paying taxes at at. Most of them have been on tax holidays since Adam.

Thanks Joe, however, the question is whether the Multinational Corporations 8n Ghana are paying taxes at at. Most of them have been on tax holidays since Adam.
Joe 9 years ago

Kiki, we should deal with facts. Royalties for example are paid on gross revenues. So irrespective of whether a company is in a loss making position, because of usually outstanding capital allowances it pays royalties on its ...
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Kiki, we should deal with facts. Royalties for example are paid on gross revenues. So irrespective of whether a company is in a loss making position, because of usually outstanding capital allowances it pays royalties on its gross revenues. As a country we should look for facts before we make sweeping conclusions. The GHEITI reports as well as those of PIAC will reflect how the low price of crude has adversely impacted the revenues of the upstream oil companies and by extension income to government. A little correction here. There are no tax holidays in Ghana's extractive industry, both mining and oil.
Aboki Iddi 9 years ago

Better still Joe. Keep going.

Better still Joe. Keep going.
Aboki Iddi 9 years ago

Any reason, evidence or theory to support your point? Please lets elevate our contribution to new on the business news. Lets make it true business forum

Any reason, evidence or theory to support your point? Please lets elevate our contribution to new on the business news. Lets make it true business forum
Aboki Iddi 9 years ago

Joe, comments is the improved and rational explanation of the comments thus far. You have expanded the comments to include effect on royalties and corporate taxes on the impact of falling oil prices on revenue from Ghana's im ...
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Joe, comments is the improved and rational explanation of the comments thus far. You have expanded the comments to include effect on royalties and corporate taxes on the impact of falling oil prices on revenue from Ghana's import and export of oil. But, your comments is also theoretical as analysis as previous one.

Being a member of parliament, the MP could have spent some time and resources under his office to gather comparative figures to guide his comments. The numbers comparative numbers would have inform his comments, but I guess his comments are mere political comments than economic comments.

For Joe, I may understand if you don't have resource to get the numbers. You just made a contribution. But the MP was invited as a speaker to the forum; therefore, he had time to get the numbers to inform his comments.

Having said that, Joe, I don't think Ghanaian consumers are those absorbing all the cost of oil imports. The Ghana government provides some subsidies.

Any ways, Joe's comments is in the right directions, to some extent.

Emma 9 years ago

Also no that cocao price has continued since 2012 .Mr. MP TALK TRUE NOT FOR ONLY YOUR POLITICAL INTEREST.

Also no that cocao price has continued since 2012 .Mr. MP TALK TRUE NOT FOR ONLY YOUR POLITICAL INTEREST.
Emma 9 years ago

Just try and examine the gold price decline since 2012 chart go to stuck market NPP is finish.

Just try and examine the gold price decline since 2012 chart go to stuck market NPP is finish.

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Low oil prices don’t hurt Ghana – Kwarteng

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