Decline in oil prices: Latest report shows Ghana could lose over GHC4 billion revenue
- Ghana could lose over GHC4 billion if oil prices remain as they are on the international markets, a new report has suggested
- The report indicated that the situation may work against Ghana's interest if the market price remains at $30 a barrel
- A Goldman Sachs report shows that a tussle between OPEC and Russia would affect the market price
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Fresh reports coming in show that Ghana is likely to lose an estimated GHC4,149,467,250 in the wake of falling oil prices on the world market.
YEN.com.gh understands that this represents about half of Ghana’s projected oil revenue for the year 2020.
The situation would become a reality if oil prices continue to decline or stay at around $30 a barrel for the rest of the year.
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Per a report by myjoyonline.com, the situation is likely to place pressure on the government to immediately review its budget before July 2020.
In the 2020 budget presented in Parliament, the government estimated that it could receive about $1.5 billion at the benchmark price of $62.6 per barrel for its oil revenue.
The situation, however, presents itself as a challenge in the wake of the spread of the coronavirus on the demand for oil.
It is also as a result of the sudden price challenge between Saudi Arabia and Russia, leading to the pricing of oil a about $30 a barrel.
A research by Goldman Sachs shows that the Organization of Petroleum Exporting Countries (OPEC) and Russia are currently engaged in a tussle that could lead to a fall in oil prices.
Saudi Arabia recently reduced its official selling prices as it plans to increase output above 10 million barrels a day.
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In other news, the Coalition of Aggrieved Customers has called on the government to ensure that their deposits are released in a maximum of two weeks.
According to them, they would have no option than to embark on a demonstration if their demands are not met.
The group indicated that the government has refused to implement measures to ensure the payment of deposits to their customers following the financial sector clean-up.
In an address to the media, the coalition’s public relations officer, Charles Nyame, stated that the government has till Tuesday, March 24, 2020, to settle all outstanding payments.
In 2019, the Securities and Exchange Commission (SEC), revoked the licenses of 53 fund management companies.
This, per a citibusinessnews.com report, was as a result of a series of regulatory breaches discovered with regard to their operations.
Information available shows that the companies affected by SEC's decision were managing over GHC8 billion in assets.
It has been established that some of the collapsed fund management companies had locked up funds in savings and loans, as well as other financial institutions that were shut down by the Bank of Ghana (BoG).
As a result, they were therefore not in the position to meet demands for funds by investors.
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Source: YEN.com.gh
