Finance Minister adjusts 2023 crude oil price projection, anticipates 32% decline in petroleum receipts
Finance Minister, Ken Ofori-Atta, has announced a significant adjustment in the crude oil price projection for 2023 during the presentation of the 2023 Mid-Year Budget Review.
At the time of the formulation of the 2023 budget, a benchmark revenue crude oil price of $88.55 per barrel was utilized to project petroleum revenues of $1.48bn for the year, adhering to the provisions of the Petroleum Revenue Management Act (PRMA) 2011, (Act 815) as amended.
However, recent global economic developments have led to a noticeable decrease in crude oil demand.
Consistent with Section 7 of the Petroleum Revenue Management (Amendment) Act 2015, (Act 893), the Finance Minister disclosed that the average crude oil price has been revised to $74.0 per barrel, down from the previous projection of $88.55 per barrel used in the 2023 Budget.
As a result of this revision, the total petroleum receipts for 2023 have been adjusted downwards from $1.48bn million to $1bn, signifying a 32 percent decline.
The revision in crude oil price projection reflects the economic challenges and uncertainties brought about by the changes in the global oil market.
Despite this decline in petroleum receipts, the Finance Minister emphasized the government’s commitment to prudent fiscal management and responsible economic policies.
This adjustment in petroleum revenue projections underscores the need for adaptive economic strategies to navigate the evolving market conditions and promote fiscal stability in Ghana.
