Star Oil Limited has suspended its membership of the Chamber of Oil Marketing Companies (COMAC) with immediate effect, sending shockwaves through Ghana’s downstream petroleum sector. The move has raised concerns about internal cohesion within the industry body.
According to a statement issued by Star Oil, the suspension is due to COMAC’s public stance on the petroleum price floor, a contentious regulatory issue within the industry. Star Oil has consistently called for the abolition of the price floor, a position that differs from the majority view held by COMAC’s membership.
The company expressed dissatisfaction that its perspective has not been fairly acknowledged or adequately explained, particularly during recent media engagements by the Chamber’s Chief Executive. Star Oil believes that continued membership of COMAC under the current circumstances exposes the company to reputational risk without providing a fair platform for its views to be represented.
COMAC’s Executive Secretary, Dr. Riverson Oppong, has explained that the price floor was introduced to stop aggressive price competition among oil marketing companies, which was damaging the market. He stressed that any change to the policy cannot be made unilaterally and requires industry-wide consultation.
The dispute highlights the challenges facing Ghana’s petroleum sector, which has seen a decline in production and revenue in recent years. The sector’s future hangs in the balance as industry players and regulators grapple with issues of pricing, investment, and sustainability.
The outcome of this dispute is likely to have significant implications for the industry and consumers alike.
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Author: Korkor Anumu
