Star Oil Halts COMAC Membership Over Dispute on Petroleum Price Floor
Star Oil Limited has announced the immediate, indefinite suspension of its membership in the Chamber of Oil Marketing Companies (COMAC), a decision that has further strained relations within Ghana’s downstream petroleum industry and triggered fresh concerns about unity within the umbrella body.
In a statement released on Wednesday, January 21, the oil marketing firm said the decision followed extensive internal deliberations, emphasising that the move was not taken lightly.
The company noted that it has been a long-standing and active member of COMAC and remains the Chamber’s biggest financial supporter, having consistently contributed to its activities and policy advocacy efforts.
Star Oil explained that its association with COMAC was based on the understanding that the Chamber would equitably represent the interests of all members and provide space for diverse but constructive opinions on regulatory and policy issues. It said recent actions have eroded this understanding, leading the company to reconsider its continued participation.
Price floor dispute
The disagreement, according to Star Oil, centres on COMAC’s public position on the petroleum price floor, a highly debated regulatory measure in the downstream sector.
The company disclosed that it has consistently argued for the removal of the price floor, a stance that differs from the dominant view within the Chamber. Star Oil expressed concern that its position has not been fairly reflected or clearly communicated, particularly during recent media appearances by COMAC’s Chief Executive.
It said the unbalanced messaging has contributed to adverse public perceptions, suggesting that its position is driven by anti-competitive intentions or other improper motives.
Star Oil described such suggestions as unfair and harmful to its corporate image, especially considering its long-standing role and contributions within the industry.
Market-based justification
Restating its position, Star Oil said its opposition to the price floor is firmly rooted in established economic and market principles. The company argued that the policy interferes with pricing mechanisms by delaying the pass-through of international fuel price movements and exchange rate fluctuations into the domestic market.
It maintained that this weakens competition and ultimately works against consumer interests, noting that similar reasoning previously led to the elimination of the price floor for Bulk Distribution Companies.
“In view of these developments, Star Oil believes that remaining a member of COMAC under the current circumstances exposes the company to reputational risks without offering a fair avenue for its views to be properly represented,” the statement said.
“Consequently, we have chosen to suspend our membership until the Chamber demonstrates a clear commitment to balanced engagement and objective communication of differing positions held by its members.”
