Government must not reduce petroleum prices even if there is reduction in the world market.

Just this morning, I read an article that the International Monetary Fund is predicting that crude oil prices may slump to as low as $20 per barrel in 2016.

I feel very sad to see some people within the country especially opposition elements jubilating just because they may have a campaign tool, since the dumso campaign will be neutralise latest by January ending. If it happens that way, there will be hue and cry for the reduction in petroleum products. If government refuses to reduce, they will tag government as insensitive and bring in the warped logic that during the president kuffour regime, he bought it at $147 and sold it at 5 cedis.

They will gleefully do this to score cheap political points without looking at the negative impact on our economy. Dr Bawumia will be in his elements to do the usual vile propaganda.

Let us not forget that we are an oil producing country and the Petroleum Revenue Management Act stipulates clearly that 70% of our oil revenue should go into budgetary support.

I vividly remember that last year, in the 2015 Budget target, the finance minister targeted $99 per barrel which we were expected to get GH¢4.2 billion (3.1 percent of GDP). Unfortunately, the prices slumped down so it was reviewed to $57 per barrel which translates to GH¢1.8 billion (1.3 percent of GDP) difference of GH¢2.2 billion.

Now, the target this year is estimated at GH¢2,008.4 million (1.3 percent of GDP). Looking at the trend, it will be highly difficult for us to reach the target. So I will not be surprised if the finance minister goes back to parliament with a supplementary budget.

Going forward, I think the prices of the petroleum products should remain stable amidst low prices, so that government can rake in some revenue to supplement the shortfall.

We are watching...
Awal Mohammed.
(The voice of conscience)