The government of Ghana has maintained that the 10 percent price reduction at the beginning of the year is sufficient and no further cut can be tolerated by the highly indebted national economy. Despite mounting pressure for an additional reduction in price, the high rate of subsidy coupled with lower government revenue from oil is likely to force the Ghanaian government to maintain status quo. The Ghanaian government recently secured a $1.0bn loan from the IMF and plans to raise another $1bn in Eurobond to repay a maturing one.
A13 percent depreciation in the Cedi year-to-date also means marketers have to pay higher for petroleum product importation into the country. Ghana imports 89 percent of its 1,1134MT yearly consumption. A possible delay to Ghana’s 100,000b/d TEN project, owing to a border dispute with Cote d’Ivoire, means government revenue in the coming years may be significantly lower than expected and savings on expenditure like petroleum subsidy could help cushion government revenue.