Ghana could begin locking in future costs for oil and petroleum imports from the tip of March because it seeks to include inflation, stated Finance Minister Ken Ofori-Atta.
A internet exporter of crude oil, Ghana may benefit from rising costs whereas persevering with to maintain home prices in verify by agreeing to purchase gas at pre-set costs, Ofori-Atta stated in an interview by telephone. The finance ministry is at the moment finding out the matter and can make suggestions within the coming weeks, he stated.
“We need assurances on costs,” Ofori-Atta stated. “You wish to cap your backside aspect and have the ability to benefit from the upside. By the tip of March we could have clear coverage route.”
A call to restrict Ghana’s publicity to larger costs will come because the West African nation must restrict spending and client value development beneath a bailout plan agreed with the International Monetary Fund in April 2015. The inflation price has nearly halved previously two years to 10.three% in January and the central financial institution forecasts it should decelerate to inside its goal of 6 % to 10% earlier than the tip of the yr.
Rising export costs for oil will bolster Ghana’s funds and assist pay for a lower in gas levies that was launched earlier in February, stated Ofori-Atta. The nation ready its 2018 price range assuming crude at $57/bbl whereas costs rose this yr to as excessive as $66 per barrel.
The worth of Ghana’s oil exports exceeded imports final yr for the primary time as producers equivalent to Tullow Oil Plc and Eni SpA elevated output from new fields, based on Bank of Ghana information. Ghana consumed over three million metric tons of petroleum merchandise within the first ten months of 2017, based on information from the National Petroleum Authority.
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