GHANA MAY LOSE 50% OIL REVENUE IF CRUDE OIL PRICE CONTINUES TO FALL

Ghana will lose about 50 percent of its estimated
revenue from crude oil exports this year if the
price of crude oil on the international market
continues to decline, Dr. John Gatsi, a Senior
Lecturer at the University of Cape Coast Business
School has said.
Speaking in an interview with Times Business in
Accra on Wednesday, he said the government in
its 2015 budget earmarked projects in road
construction, educational infrastructure and
modernisation of agriculture based on the
expected revenue from crude oil exports.
“It would be very difficult, if not impossible,
for the government to execute these projects if
the price of crude oil continues to take a nose
dive,” he said.
He said the government in its 2015 budget
projected the price of crude oil to stabilise
around $90, but the price has dropped to a
record low of $50 per barrel.
According to the 2015 budget, the total revenue
from oil is estimated at Ghc4.2 billion, or 3.1
per cent of Gross Domestic Product (GDP).
Meanwhile, Brent crude oil recovered slightly
after falling below $50 a barrel for the first
time since May 2009 on Wednesday, as traders
reassessed their books after a sharp slide since
the start of the year on a growing supply glut
and weak global demand.