Ghana’s petroleum receipts dropped sharply by 56 percent year-on-year in the first half of 2025, marking one of the steepest mid-year declines in recent memory.
According to the Public Interest and Accountability Committee (PIAC), total inflows into the Petroleum Holding Fund (PHF) fell to US$370.34 million from US$840.76 million recorded in the same period of 2024.
The findings, contained in PIAC’s 2025 Semi-Annual Report on the management and use of petroleum revenues, highlight the twin impact of declining oil output and global price weakness on Ghana’s fiscal position.
The Committee attributed the sharp fall to lower crude oil liftings and a drop in international oil prices, which jointly eroded export revenues across the country’s three main producing fields, Jubilee, TEN, and Sankofa-Gye Nyame (SGN).
“The significant reduction in receipts was largely due to decreased liftings and softer market prices.
“These developments underscore Ghana’s exposure to both production inefficiencies and external price shocks.”
PIAC’s 2025 Semi-Annual Report
Breakdown of Petroleum Receipts
The report showed that Ghana’s petroleum income for the period was derived from five key revenue streams, “Corporate Income Taxes (CIT), Carried and Additional Participating Interest (CAPI), Royalties, Surface Rentals, and Interest accrued on the Petroleum Holding Fund.”
Out of the total US$370.34 million, CAPI contributed the largest share at US$178.48 million (48%), followed by Corporate Income Taxes, which generated US$148.75 million (40%).
Royalties accounted for US$40.15 million (10.8%), while Interest on the PHF and Surface Rentals yielded US$2.10 million and US$0.86 million, respectively, representing less than one percent of total inflows.
The Committee noted that despite the steep decline, the petroleum sector remains a crucial pillar of Ghana’s public finances, having cumulatively contributed US$11.58 billion to the national purse since commercial production began in 2011.
“While the fall in receipts is worrying, petroleum continues to be an important source of budgetary support.
“However, the volatility of the sector calls for prudent management, transparency, and strong institutional oversight.”
PIAC’s 2025 Semi-Annual Report
PIAC’s findings come against the backdrop of falling crude output across Ghana’s producing fields.
These operational setbacks were compounded by global oil price movements. Benchmark Brent crude prices averaged US$70 per barrel in the first half of 2025, compared to US$82 per barrel during the same period in 2024, an approximate 15 percent drop.
The combination of lower output and softer prices created a double blow for Ghana’s oil earnings.
The sharp revenue contraction is the clearest indication that both production and pricing must be managed strategically.”
Fiscal Implications and Policy Concerns
The decline in petroleum receipts has serious implications for Ghana’s fiscal space and energy sector financing.
Petroleum revenues feed into key statutory funds such as the Annual Budget Funding Amount (ABFA), the Ghana Stabilisation Fund (GSF), and the Ghana Heritage Fund (GHF) which are critical for development and stabilization purposes.
A drop of more than half in receipts means less funding available for priority infrastructure projects, social programs, and debt servicing.
PIAC, in its report, urged government agencies to tighten operational oversight and ensure efficiency in state-owned petroleum enterprises, particularly the Ghana National Petroleum Corporation (GNPC), to maximize returns.
“The Committee reiterates the need for greater transparency and accountability in the management of petroleum revenues.
“Enhanced oversight of state entities and regular publication of performance data will help safeguard public interest and ensure optimal returns to the state.”
PIAC’s 2025 Semi-Annual Report
If production and price weaknesses persist, Ghana’s petroleum revenue contribution to GDP could shrink further, potentially reducing fiscal buffers at a time when the country is under an IMF program and pursuing strict expenditure controls.
Despite current headwinds, PIAC’s report underscores the long-term significance of the petroleum industry in Ghana’s economic transformation.
The Committee believes that better production management, coupled with strategic investment in exploration and maintenance, could reverse the current decline.
PIAC’s warning is clear, unless Ghana strengthens its operational, fiscal, and regulatory frameworks, the gains from its oil wealth may continue to diminish.
