Coronavirus: Govt to register GH¢5.7 million shortfall in crude oil receipts

Ghana is expected to record a significant shortfall in petroleum revenue of about GH¢5.7 million this year, says the Finance Minister, Ken Ofori-Atta.

The finance boss blamed the drop on the impact of Coronavirus on Ghana’s petroleum revenues in 2020.

Ken Ofori-Atta made this statement while addressing parliament today on the measures taken by government to mitigate the likely impact the coronavirus pandemic will have on the economy.

The presentation also detailed the government’s expected external support to help tackle the outbreak of the virus.

According to the Finance Minister, “government programmed a crude oil price of US$62.60 per barrel for the 2020 Budget, consistent with the PRMA (Act 815). Global crude oil price has, however, declined significantly since the outbreak of the coronavirus.”

“As at 30th March 2020, crude oil prices (Brent) were down to US$22.9 per barrel from the December 2019 price of US$65.9 per barrel.”

He indicated that preliminary analysis on the country’s petroleum funds showed that at an average crude oil price of US$30 per barrel for year 2020, government will register a shortfall in crude oil receipts amounting to GH?5,679 million.

The coronavirus pandemic, Ken Ofori Atta said, will also result in a projected shortfall in Annual Budget Funding Amount (ABFA) is GH?3,526 million.

The Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund (GHF) will equally go down by GH?1,058 million and GH?453 million, respectively.

The finance ministry is projecting losses in transfers to GNPC at GH?642million.