Third quarter earnings from crude exports decrease to $19.5 million

Government’s earnings from crude exports witnessed a significant reduction for the third quarter of this year.

Latest figures covering petroleum receipts, released and signed by the Finance Minister, Seth Terkper, show that the state got $19.5 million from July to September this year.

This represents a significant reduction in the $24 million dollars it got from April to May this year and $64.3 million in the first quarter of 2016.

The decline can be attributed to a drop in Ghana’s share of crude exported from the country’s oil fields from July to September.

For instance, in the first quarter of this year, Ghana’s share of crude exported was 1.8 million barrels, in the second quarter it exported 995 thousand barrels, whiles in the third quarter, 983 million barrels was exported.

This should mean that from January to July this year, the Ghana’s share of crude oil exported from the various oil fields has reached about 3.8 million barrels.

However, when it comes to total earnings for the first nine months of this year, that is total earnings minus the necessary taxes pay out and royalties, government has secured $108 million dollars.

Government cut expected earnings from crude exports to GH¢1.4 billion, down from the 2016 budget of a little over GH¢2 billion.

The about GH¢600 million cut will affect disbursement to other critical sectors under the Petroleum Revenue Management Act.

The Ghana National Oil Company will receive Gh¢524 million while Gh¢263 million will be transferred to the Ghana Petroleum Funds.

Also, government's annual budget funding amount will receive GH¢613 million for specific programs and policies in the budget.

Story by Ghana| Myjoyonline.com