Star Oil Limited has announced the immediate and indefinite suspension of its membership in the Chamber of Oil Marketing Companies (COMAC), citing deep disagreements over the Chamber’s stance on the petroleum price floor and concerns about fair representation of members’ views.
In a statement issued on Wednesday, January 21, the company said the decision followed extensive internal deliberations and was not taken lightly. Star Oil noted that it has been a long-standing and active member of COMAC and remains the Chamber’s largest financial contributor, having consistently supported its activities and policy advocacy efforts.
According to the company, its relationship with COMAC was built on the understanding that the Chamber would equitably represent the interests of all members while providing room for diverse but constructive opinions on regulatory and policy matters. However, Star Oil said recent developments have undermined this expectation, prompting it to reconsider its continued participation.
At the heart of the disagreement is COMAC’s public position on the petroleum price floor, a controversial regulatory measure in Ghana’s downstream petroleum sector. Star Oil disclosed that it has consistently argued for the removal of the price floor, a position that differs from the dominant view within the Chamber.
The company expressed concern that its stance has not been fairly represented, particularly during recent media engagements by COMAC’s Chief Executive. Star Oil said the Chamber’s public messaging has created the impression that its opposition to the price floor is driven by anti-competitive motives or other improper considerations.
Star Oil described such perceptions as unfair and damaging to its corporate reputation, especially given its long-standing role and contributions to the industry.
Reaffirming its position, Star Oil explained that its opposition to the price floor is grounded in established economic and market principles. The company argued that the policy interferes with normal pricing mechanisms by delaying the pass-through of international fuel price movements and exchange rate fluctuations into domestic pump prices.
According to Star Oil, this distortion weakens competition and ultimately works against consumer interests. The company pointed out that similar reasoning previously informed the removal 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 the differing positions held by its members.”
The decision adds to growing tensions within Ghana’s downstream petroleum industry and raises fresh questions about unity and consensus within COMAC on key regulatory issues.
