Ghana's total petroleum receipts fell by more than 43% in 2025 as declining crude oil production and lower international oil prices combined to significantly reduce earnings from the sector, a new report by the Institute for Energy Security (IES) has revealed.

According to the report, total petroleum receipts dropped from US$1.36 billion in 2024 to US$770.27 million in 2025, representing a 43.27% decline in a single year.

The IES attributed the sharp fall to both a reduction in crude oil output and a decline in the average realised crude oil price.

The report noted that Ghana's crude oil production fell from 48.24 million barrels in 2024 to 37.30 million barrels in 2025, while the average realised price declined from US$86.12 per barrel to US$74.93 per barrel over the same period.

According to the institute, the simultaneous decline in production and prices significantly reduced the country's petroleum revenues.

The report forms part of the IES' analysis of Ghana's crude oil production between 2020 and 2026, which found that the country has recorded six consecutive years of declining oil output since production peaked in 2019.

The institute warned that the revenue decline has implications beyond the petroleum sector, noting that oil receipts have historically financed infrastructure development, social intervention programmes and energy transition initiatives.

It also cautioned that lower petroleum revenues could constrain government spending and place additional pressure on Ghana's energy sector.

The report said receipts to the Ghana National Petroleum Corporation (GNPC) have also declined sharply, limiting the corporation's capacity to finance upstream investments while existing financial obligations continue.

To reverse the trend, the IES called for accelerated investment in new oil wells, the signing of new petroleum agreements, improved reservoir management and stronger implementation of government initiatives aimed at increasing crude oil production.

The report was authored by Smith Prosper Boahene and Prince Lumor of the Institute for Energy Security.