Star Oil Limited has announced the indefinite suspension of its membership from the Chamber of Oil Marketing Companies (COMAC), a move that has heightened tensions in Ghana’s downstream petroleum sector and raised questions about cohesion within the industry group.
In a statement released on Wednesday, January 21, the company said the decision was made after careful consideration. Star Oil emphasized that it has been a long-time, active participant in COMAC and remains one of its largest financial contributors, supporting the Chamber’s operations and advocacy initiatives over the years.
The company explained that its involvement in COMAC was based on the expectation that members’ views would be fairly represented and that differing, constructive perspectives on policy and regulatory matters would be respected. Recent developments, it said, have undermined these principles, prompting a reassessment of its continued participation.
The disagreement centers on COMAC’s public position regarding the petroleum price floor, a regulatory measure that has generated debate within the industry. Star Oil has consistently advocated for the removal of the price floor, a stance that contrasts with the majority view among COMAC members.
The company expressed concern that its perspective has not been adequately acknowledged or communicated, particularly during recent media statements by COMAC’s Chief Executive. Star Oil said this has contributed to public misunderstandings, creating the impression that its position is motivated by anti-competitive or improper intentions—claims the firm strongly denies.
“Such insinuations are unfounded and harm our reputation, given our long-standing contributions to the sector,” the statement said. Star Oil reiterated that its opposition to the price floor is based on economic and market considerations, noting that the policy distorts pricing by preventing international fuel prices and foreign exchange fluctuations from being reflected promptly in the local market. The company added that this reduces competition and ultimately disadvantages consumers—a reasoning previously applied to justify the removal of the price floor for Bulk Distribution Companies.
“In light of these issues, continued membership under current conditions exposes Star Oil to reputational risk without providing a fair platform for our views,” the statement concluded. “We have therefore suspended our membership until COMAC demonstrates a commitment to balanced representation and fair communication of differing opinions among members.”
Source: Classfmonline.com
Star Oil suspends COMAC membership amid price floor dispute
