By: Kenneth Appiah Bani
Ghana’s petroleum revenue has experienced a significant 56 percent decline in the first half of 2025, according to the Public Interest and Accountability Committee (PIAC)’s latest Semi-Annual Report on petroleum revenue utilisation.
The report shows that a total of US$370.34 million was deposited into the Petroleum Holding Fund (PHF) between January and June 2025 down sharply from US$840.76 million recorded during the same period in 2024. PIAC attributes the sharp decline mainly to lower crude oil production and reduced international market prices.
Crude oil output fell by 25.92 percent, from 24.86 million barrels in H1 2024 to 18.41 million barrels in H1 2025, across Ghana’s three producing fields Jubilee, TEN, and Sankofa Gye Nyame (SGN). The average achieved price per barrel also declined by 12.99 percent, dropping from US$86.12/bbl to US$74.93/bbl within the same period.
PIAC expressed concern that no new petroleum agreements have been signed since 2018, warning that Ghana risks losing its attractiveness to investors in the upstream petroleum sector. The Committee therefore urged the government to “increase efforts to arrest the decline in crude oil production and secure new investments into the industry.”
The report also revealed worrying trends in rent payments, noting that surface rental arrears rose sharply to US$2.82 million as of June 2025, compared to US$439,011 in the previous year. PIAC has called on the Ghana Revenue Authority, Petroleum Commission, Bank of Ghana, and Ministry of Energy to collaborate effectively to recover these outstanding arrears.
On allocation and utilisation, the Committee noted that the share of petroleum revenue for GNPC’s operational development (Level B) has been cut from 30 percent to 15 percent of net Carried and Participating Interest, urging the government to better resource the national oil company to lead Ghana’s energy transition efforts.
PIAC further highlighted inconsistencies between the Petroleum Revenue Management Act (Act 815) and Article 252(2) of the 1992 Constitution, concerning disbursements from the Annual Budget Funding Amount (ABFA) to the District Assemblies Common Fund (DACF). It recommended an amendment to the Act to align with the Supreme Court’s interpretation that “not less than five percent of the ABFA shall be paid to the DACF.”
Meanwhile, Ghana’s petroleum funds, the Ghana Heritage Fund (GHF) and Ghana Stabilisation Fund (GSF) recorded mixed results. The GHF grew by 18.09 percent to US$1.30 billion, while the GSF declined by 36.92 percent to US$122.91 million, mainly due to withdrawals. Combined, the petroleum funds increased by 9.83 percent to reach US$1.42 billion by mid-2025.
PIAC’s Chair, Constantine Kudzedzi, reaffirmed the Committee’s commitment to transparency and accountability despite funding challenges, stressing that the report is meant to “guide policy formulation and ensure Ghana’s petroleum revenues are used effectively for national development.”
Source: PIAC 2025 Semi-Annual Report
