The Public Interest and Accountability Committee has attributed the $600 million petroleum revenue loss to declining oil production levels.

Chair of PIAC’s Technical Subcommittee, Samuel Bekoe, explained that the downturn was expected, given a sustained decline in crude oil output over the past few years.

“In terms of the $600 million reduction, it is largely driven by the production decline, and prices have also not been as favourable as they were last year,” he said in an interview on Joy FM’s Midday News on Monday, April 20.

According to him, the combined effect of reduced output and relatively weaker global oil prices has put pressure on Ghana’s petroleum receipts, limiting the funds available for national development.

Mr Bekoe noted that the government has already signalled its intention to channel available petroleum revenues into its flagship “Big Push” infrastructure programme, making efficient resource management even more critical.

He, however, raised concerns about Ghana’s limited financial buffers to absorb such shocks, pointing to inadequate funding of the Stabilisation Fund over the years.

“If the Stabilisation Fund had been adequately resourced in line with the law, we would have had enough to cushion the economy against this kind of shortfall,” he stated.

Mr Bekoe further indicated that deviations from the allocation formula outlined in the Petroleum Revenue Management Act have weakened the fund’s ability to serve its purpose.

He stressed the need for strict adherence to the law governing petroleum revenue distribution to rebuild reserves and protect the economy from future volatility in oil revenues.

The PIAC official also underscored the importance of addressing production challenges within existing oil fields and accelerating investment in discoveries to reverse the downward trend.

His comments come at a time when Ghana’s petroleum sector is under mounting pressure, following a sharp decline in oil revenue. The country lost nearly $600 million in a single year, according to the latest report by PIAC.

The report indicates that total petroleum receipts fell by 43.27 per cent, dropping from $1.36 billion in 2024 to $770.27 million in 2025.

This steep decline is closely linked to a sustained drop in crude oil production, which has now fallen for six consecutive years.

Data from the report shows that output decreased from 71.44 million barrels in 2019 to 37.3 million barrels in 2025, representing an average annual decline of about 9 per cent.

The downturn has been attributed to a combination of factors, including maturing oil fields, natural reservoir depletion, technical challenges, and limited investment in upstream exploration.