Proceeds from crude oil exports cannot be used to cushion consumers – Dr. Acheampong

Petroleum law needs to be amended to be able to use oil money, Analyst

Global crude prices continue soaring

Fuel prices to hit GH¢9 by end of March

Political Risk Analyst, Dr. Theo Acheampong, has stated that proceeds from crude oil exports cannot be used to cushion consumers against the rising cost of fuel.

According to him, any attempt to use revenue from crude oil exports to stabilize rising oil prices will have to be preceded by an amendment of the petroleum revenue management law.

Speaking on JoyNews, Dr. Acheampong stated, “If you want to do that, you have to amend the petroleum revenue management law. The law is very clear on that. For every GH¢1 of revenue you get, you get 70 pesewas to support the annual budget fund, 21 pesewas goes to support the stabilization fund and 9 pesewas goes into the Heritage Fund. This does not include the money that we’ve given to GNPC for their operations."

"And the spending in all these three areas, the ABFA, Stabilization Fund, and Heritage Fund are clearly stated in the law.”

He continued, stating other parts of the law have been designated for cushioning of consumers.

“Even within the budget component, you cannot go and use that because there are areas that are predetermined to finance or subsidize consumers at the pumps."

"I personally don’t think it’s the wisest of things to do at this particular moment because we’ve had an issue in the past of recurrent spending and pretty much subsidizing middle-class consumption and it ends up creating a backlash for the economy.”

Oil prices have in the last few weeks seen an upward increment due to the Russia-Ukraine crisis.

This has negatively affected prices at the pumps as experts say prices are likely to cross GH¢9 per litre by the end of March.