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    Employ targeted-subsidized systems to check macro-economic challenges – Prof. Quartey

    Inflation in Africa: Some subsidy programs prolonging situation – Jeff Gable

    Cedi Summit comes off today at Alisa Hotel

    BoG’s supply of dollars to BDCs drops from 85% to 21% within 3 months – CBOD

    BoG, CSA deepen collaboration to fight cyber threats

    Societe Generale Ghana launches new ‘boafo loan product’ assist MSMEs

    Dr. Bawumia unveils Ghana’s first Tier IV data centre

    Intravenous Infusions PLC records 10% growth in profit in 2021

    Regional economic cooperation needed to enhance Africa’s competitiveness – Bawumia

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    Cedi Summit comes off today at Alisa Hotel

    BoG’s supply of dollars to BDCs drops from 85% to 21% within 3 months – CBOD

    Societe Generale Ghana launches new ‘boafo loan product’ assist MSMEs

    CBOD calls for a more structured supply of Forex for petroleum products

    Bank of Namibia Governor pays courtesy call on BoG Governor

    DBG funds will not be used to buy gov’t securities – Deputy CEO assures

    Producer Price Inflation rises again to hit 33.5% in May 2022

    #CitiBusinessFestival: Garment industry needs financial support to thrive – Cyndex CEO

    Ghana tops list of countries with cheapest cost of electricity in West Africa

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    BoG, CSA deepen collaboration to fight cyber threats

    Dr. Bawumia unveils Ghana’s first Tier IV data centre

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    Introduction of GhanaPay complements efforts to capture the unbanked into digital payments ecosystem – Veep

    #CitiBusinessFestival: How the country can take advantage of the “Ghana Opportunity”

    Chamber of Telecommunications calls for more investment into Technology to improve livelihoods

    Citi Business Festival: Address lack of financial data challenges using MoMo – Rufai Abdul Majeed

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    Regional economic cooperation needed to enhance Africa’s competitiveness – Bawumia

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    Gulf central banks, Bank of England raise policy rates after Fed hike

    US Fed meets inflation surge with 75bp hike

    As Nigeria’s inflation rate accelerates to 17.71%, the World Bank warns millions could face extreme poverty

    Modern airline tickets design with flight time and passenger name. Plane tickets vector pictogram. Airline boarding pass template. Vector illustration. The concept of air transportation

    Ticket prices to rise following B.A schedule change on Accra-London-Accra route

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Making up for oil revenue shortfall a huge task for Ghana – Kweku Awotwi

byNerteley Nettey
May 26, 2020
in Oil And Gas, Top Stories
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Outgoing Managing Director of Tullow Ghana and Executive Vice President of Tullow Oil plc., Kweku Awotwi, says government would have to work really hard to make up for the revenue shortfalls created by fallen crude oil prices.

The outbreak of the novel coronavirus has led to a limited demand for crude globally.

As a result, prices have also fallen from almost 60 dollars to nearly 30 dollars a barrel thereby affecting global economic growth and creating excess oil supply.

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In Ghana, the situation has led to fuel price reductions, while government is losing revenue from its annual projections for oil revenue.

Government had projected to receive $1.567 billion from oil revenues, anchored on a price prediction of $62.61 per barrel.

However, the price on the international market, which was $66.25 per barrel at the start of the New Year, has fallen steeply to $26 per barrel as of March 21, 2020.

Speaking to Citi Business News, Mr. Kweku Awotwi said although oil prices will eventually pick up, it is difficult to tell how soon that will happen.

“Ghana like everybody in the industry is feeling the pain of reduced prices. The oil industry as a whole has been sucked up. The initial expenditures are really in our capital program product where you spend the most money but there is a big revenue gap. At the beginning of the year, I believe we thought the price of oil would be around 60 dollars, today its 30 dollars. So, anyone who is counting on the oil revenue immediately faces a deficit of 30 dollars. That is a huge gap in revenue so it affects all of us,” he said.

“…But from a country point of view, if we were depending on those funds or helping us keep our budget or maintain our budget, the government has a huge task to reach the gap that has come about. All I say is that these things tend to be cyclical. Today it’s slow, at some point it will go up again. But how long that takes and where that goes, nobody can really tell, but it’s not going to stay at 30 dollars forever. But for now, these things are really challenging for Ghana and other countries,” he noted.

The oil industry has been struggling with limited global demand driven by the novel Coronavirus economic slowdown.

Since March, a dispute between Russia and the Saudi-dominated OPEC cartel has driven prices even lower.

Demand is estimated to have dropped some 30 percent worldwide.

Measures to curb the spread of the coronavirus have strained budgets of oil producers and hammering the U.S. shale industry, which is more vulnerable to low prices due to its higher costs.

Crude oil also reached its lowest price since March 1999.

On Monday, April 20, 2020, prices on the May contract for West Texas Intermediate crude futures fell as low as $14.47 per barrel in afternoon Asian trade, just above the $14.40 price set more than 21 years ago.

The international benchmark Brent crude futures, meanwhile, fell 2.8 percent to $27.28 per barrel.

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