Ghana has recorded a significant increase in its petroleum revenue after seeing a little over 60% surge in the first half of 2024.
The latest report on Ghana Petroleum Funds published by the Bank of Ghana has revealed that the country in the first part of 2024 raked in $840.7 million from oil proceeds compared to $521.8 million recorded in the second part of 2023. This represents a little over 60% increase.
However, on a year-on-year basis, the growth in the first half of 2024 represents 55% increase compared a total of $540.5 million in the same period last year.
The total petroleum revenue consists of earnings from oil liftings, corporate tax, surface rentals, and interest on the Petroleum Fund Account.
According to the report, all the revenue-generating avenues in the Petroleum Sector recorded significant performance over their previous earnings.
Proceeds from oil lifting surged to $474.3 million in the first half of 2024, up from $319.7 million in the second half of 2023. This represents an increase of approximately 48.3%. The growth in oil-lifting revenues can be attributed to increased production and favorable global oil prices.
Corporate taxes from petroleum companies rose significantly, from $198.6 million in the second half of 2023 to $358.7 million in the first half of 2024. This impressive increase of around 80.6% reflects improved profitability and higher taxable incomes within the sector over the period under review.
Surface rental fees also experienced a dramatic rise. Revenues from surface rentals jumped from $112.1 million to $540.9 million, marking a staggering increase of approximately 383%. This surge is likely due to new leasing agreements and expansions in the exploration areas.
In addition, interest earned on the petroleum funds also saw growth, increasing from $3.3 million in the second half of 2023 to $7.2 million in the first half of 2024, representing an increase of around 118%.
These significant improvements in the petroleum revenue mark a major boost in the overall revenue mobilization at a time when the country is going through an IMF bailout program.
This increase in revenues if properly managed according to the Petroleum Revenue Management Act, 2011 (Act 815) can enhance the buffers of the economy, provide a boost for the national budget, and enhance investments in infrastructures in the areas of health, education, and other sectors of the economy.
