Pulse.com.gh logo

Oil Prices Protect Ghana from rising oil prices by hedging oil revenue – Senyo Hosi

According to Senyo Hosi, since Ghana is a net exporter of oil, it is necessary to hedge oil revenue to help cushion consumers greatly.

  • Published:
Senyo Hosi play

Senyo Hosi

The Chief Executive Officer (CEO) of the Chamber of Bulk Oil Distributors (CBOD) has called on the government to initiate a process that will stabilize oil revenue in the country following the gradual rise in crude oil prices.

According to Senyo Hosi, since Ghana is a net exporter of oil, it is necessary to hedge oil revenue to help cushion consumers greatly.

“So we can hedge against cash settlement where the government rakes in a hedge income…the government will, therefore, reduce the taxes to correspond to the losses in income from crude oil exports,” he told Accra-based Citi FM.

READ ALSO: Dr Bawumia launches Mobile Money payment interoperability system

The prices of crude oil have been increasing gradually on the international market for some weeks now.

A barrel of the commodity is being sold at seventy-seven dollars.

This is expected to increase the cost to importing countries like Ghana.

READ ALSO: Ghana to get off PayPal’s blacklist by 2020 - Bawumia

“In addition, the government could implement the crude price threshold which is the politically sensitive price that the government thinks it has. Assuming the CPT is pegged at 75 dollars a barrel, the government reduces the taxes to compensate the loss of tax revenue when the price goes above 75 dollars mark,” Mr. Hosi added.

In a related development, others have suggested that the government resorts to the stabilization fund to cater for the losses in revenue with the implementation of the hedging policies being offered.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos

Top Articles

1 Breaking Otabil finally breaks silence on banking controversiesbullet
2 Capital Bank Collapse Here are the roles of a non-executive board chairbullet
3 Nana Appiah Mensah Menzgold boss apologises to BoG after Twitter rantbullet
4 Investment banks in Ghana Top 5 investment banks in Ghana and why...bullet
5 Bank Collapse Capital Bank Board misused GHC 610 million from...bullet
6 Banking Crises Sahel Sahara and Omni Bank become latest to mergebullet
7 Collapse Bank Here’s what former staffs of Capital Bank are...bullet
8 Increment Fuel prices to go up again – IESbullet
9 Collapsed Banks Here are the auditing firms for the 7...bullet
10 Banks Collapse Gov’t to take action against those...bullet

Top Videos

1 Former Capital Bank staff grills pork for survivalbullet
2 Forbes 2018 Africa's billionaires rich listbullet
3 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
4 Money Alert Meet Africa's richest womanbullet
5 Support Finance minister buys Kantanka carbullet
6 Plane Crash Starbow suspends operations following plane crashbullet
7 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
8 Tech 6 reasons you should buy an iPhone SE instead of any...bullet
9 New Phones Nokia MWC 2018 Event in 5 minutesbullet
10 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet