No Result
View All Result
Sunday, May 28, 2023
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    BoG Act needs clarity, improvement for easy implementation – Governor

    Don’t shortchange customers; use standardized measurements – Traders told

    We’re ready to provide liquidity support to banks – BoG reiterates

    Utility tariff increase will cripple businesses – AGI

    GRA arrests 3 shop owners for not issuing VAT invoices

    GNPC-PetroSA deal: Freddie Blay threatens to sue CSOs

    Mahama speaks at 2023 Korea Africa Business Summit

    Chinese involvement in Ghana’s economy not problematic – Nana Addo

    Joe Jackson cautions govt against immediate return to international market

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    BoG Act needs clarity, improvement for easy implementation – Governor

    Utility tariff increase will cripple businesses – AGI

    GRA arrests 3 shop owners for not issuing VAT invoices

    GNPC-PetroSA deal: Freddie Blay threatens to sue CSOs

    Chinese involvement in Ghana’s economy not problematic – Nana Addo

    Ghana Association of Banks welcomes provisions for recapitalization

    BoG commissions Financial Industry Command Security Operations Centre

    GSA to clamp down on sub-standard cables, electrical products dealers

    GNPC hasn’t signed any deal with PetroSA – Freddie Blay clarifies

  • TECHNOLOGY

    Ghana gets $300 million from US to build first-of-its-kind data center

    Telcoms industry players urged to partner government to promote clean energy transition

    Dominion University To Partner With USA Organisations To Set Up Centre Of Excellence For Artificial Intelligence

    Cyber Security Authority commences licensing and accreditation regime

    Twitter is reportedly planning to charge businesses $1,000 per month to keep gold verified checks

    Ghana withdraws $672m back-tax demand from MTN Group

    MTN to fight $773m tax bill from government

    Telcos to implement 1% E-Levy charge from today

    Huawei Equips 500 Traders in FinTech

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Mining propels Ghana to beat growth estimates in fourth quarter

    BoG pushes for improvement in IMF’s lending framework to boost continent’s access to resources

    Foreign exchange: Several African countries have a shortage of US dollars – why this happens and how to fix it

    Ghana and South Africa urged to leverage on AfCFTA to boost bi – lateral relations

    Silicon Valley Bank crisis: What led to stock crash, what lies ahead?

    Medical devices market projected to expand by $ 7.1 billion by close of year

    African Union adopts Africa Prosperity Dialogues AfCFTA action plan

    Third World Network Africa urges Africans to be strategic about AfCFTA

    5 important things to know about the African Continental Free Trade Area agreement

  • FEATURES
  • Videos
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    BoG Act needs clarity, improvement for easy implementation – Governor

    Don’t shortchange customers; use standardized measurements – Traders told

    We’re ready to provide liquidity support to banks – BoG reiterates

    Utility tariff increase will cripple businesses – AGI

    GRA arrests 3 shop owners for not issuing VAT invoices

    GNPC-PetroSA deal: Freddie Blay threatens to sue CSOs

    Mahama speaks at 2023 Korea Africa Business Summit

    Chinese involvement in Ghana’s economy not problematic – Nana Addo

    Joe Jackson cautions govt against immediate return to international market

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    BoG Act needs clarity, improvement for easy implementation – Governor

    Utility tariff increase will cripple businesses – AGI

    GRA arrests 3 shop owners for not issuing VAT invoices

    GNPC-PetroSA deal: Freddie Blay threatens to sue CSOs

    Chinese involvement in Ghana’s economy not problematic – Nana Addo

    Ghana Association of Banks welcomes provisions for recapitalization

    BoG commissions Financial Industry Command Security Operations Centre

    GSA to clamp down on sub-standard cables, electrical products dealers

    GNPC hasn’t signed any deal with PetroSA – Freddie Blay clarifies

  • TECHNOLOGY

    Ghana gets $300 million from US to build first-of-its-kind data center

    Telcoms industry players urged to partner government to promote clean energy transition

    Dominion University To Partner With USA Organisations To Set Up Centre Of Excellence For Artificial Intelligence

    Cyber Security Authority commences licensing and accreditation regime

    Twitter is reportedly planning to charge businesses $1,000 per month to keep gold verified checks

    Ghana withdraws $672m back-tax demand from MTN Group

    MTN to fight $773m tax bill from government

    Telcos to implement 1% E-Levy charge from today

    Huawei Equips 500 Traders in FinTech

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Mining propels Ghana to beat growth estimates in fourth quarter

    BoG pushes for improvement in IMF’s lending framework to boost continent’s access to resources

    Foreign exchange: Several African countries have a shortage of US dollars – why this happens and how to fix it

    Ghana and South Africa urged to leverage on AfCFTA to boost bi – lateral relations

    Silicon Valley Bank crisis: What led to stock crash, what lies ahead?

    Medical devices market projected to expand by $ 7.1 billion by close of year

    African Union adopts Africa Prosperity Dialogues AfCFTA action plan

    Third World Network Africa urges Africans to be strategic about AfCFTA

    5 important things to know about the African Continental Free Trade Area agreement

  • FEATURES
  • Videos
No Result
View All Result
Citi Business News
No Result
View All Result

ACEP pushes for supplementary budget to manage impact of low oil prices, COVID-19

byNerteley Nettey
March 23, 2020
in Oil And Gas, Top Stories
Share on FacebookShare on TwitterShare on Whatsapp

The African Centre for Energy Policy, ACEP, is calling on government to prepare a supplementary budget that will help manage the effects of low oil prices on the market.

According to ACEP, the impact of revenue shortfalls from the oil and gas sector due to price volatility on the international market, has severe implications for the budget particularly physical infrastructure and debt servicing as in the 2020 budget, Ghana’s infrastructure development programme is heavily dependent on oil revenues.

Global crude oil price has plunged in recent times, threatening the cash flow of oil companies and revenue of governments.

ADVERTISEMENT

Earlier this month, oil prices saw its lowest drop after a price war between Saudi Arabia and Russia, with Russia  slashing its selling prices and pledging to unleash its pent-up supply onto a market reeling from falling demand because of the coronavirus outbreak.

Brent Crude oil price has also declined dramatically from $66.25 to $26 per barrel between 2nd January 2020 and 21st March 2020. This fall in oil price has affected global economic growth and demand for oil, thus creating excess oil supply.

A statement signed by Executive Director of ACEP, Benjamin Boakye, urged government to create “A new budget that accounts for the extraordinary drop in oil prices is required for oil producing countries in Africa. This also recognizes that a mid-term budget will be too late for many countries to accommodate the full effect of oil price drop and the impacts of COVID-19 outbreak on the national budget.”

Among other demands, ACEP is also asking government to “ensure the transmission of the lower oil price to support industry and consumers of petroleum products.”

They explain that the impact of the COVID-19 outbreak could be harsh for emerging SMEs and industries that are struggling to compete in the global space, and increased unemployment as a result of layoffs on the back the pandemic is possible to occur, thus the need for the call.

“In a low oil price era, the temptation for many countries could be to increase taxes on downstream consumption to offset the revenue losses upstream. This will be injurious to many businesses in Africa, particularly in the face of inadequate incentives and stimuluses compared to the developed countries. A full transmission of the lower price of oil is therefore required for businesses and consumers in general to boost economic activity. This minimizes production and service delivery costs to reduce the burden on consumers,” the statement added.

ACEP further urged  government to have stabilization funds with adequate buffer that is capable of smoothing significant shortfalls in the budget.

“Also, hedging portions of oil outputs will minimize the impacts of oil price volatility on national budgets.”

ACEP urges 40% projected revenue in Stabilization Fund

Earlier this year, ACEP proposed to government to secure at least a 40 percent projected revenue in the Stabilization Fund in order to avoid the impact of revenue shortfalls from the oil and gas sector.

Executive Director of ACEP, Benjamin Boakye, explained that oil prices are bound to suffer from some volatility, so it will be in government’s interest to secure a constant 40 percent projected revenue in the Stabilization Fund to mitigate the effects.

“Our recommendation has been that at least we should have about forty percent of the projected revenue in the stabilization account. That should be enough to offset any instability in the international market” he said.

Related Posts

Banking And Finance

BoG Act needs clarity, improvement for easy implementation – Governor

byNii Larte Lartey

Dr Ernest Addison, the Governor of the Bank of Ghana, says there is a need to improve the Bank’s (Amendment)...

Read more

Don’t shortchange customers; use standardized measurements – Traders told

We’re ready to provide liquidity support to banks – BoG reiterates

Utility tariff increase will cripple businesses – AGI

GRA arrests 3 shop owners for not issuing VAT invoices

GNPC-PetroSA deal: Freddie Blay threatens to sue CSOs

Chinese involvement in Ghana’s economy not problematic – Nana Addo

Next Post
Dr. Yaw Baah, TUC General Secretary.

Implement a lockdown if necessary to curb COVID-19 spread- TUC tells Gov't

Video on Demand: Business Weekly

ADVERTISEMENT
Citi Business News

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.

Navigate Site

  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

Follow Us

No Result
View All Result
  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.