Star Oil Limited has announced the immediate and indefinite suspension of its membership from the Chamber of Oil Marketing Companies (COMAC), citing concerns over fair representation and communication within the industry body.
In a statement released on Wednesday, January 21, the oil marketing firm emphasized its long-standing role as an active member and largest financial contributor to COMAC, supporting the Chamber’s operations and advocacy initiatives over the years.
Star Oil explained that its membership was built on the expectation that all members’ views would be fairly considered and accommodated, particularly on policy and regulatory matters. However, the company said recent developments, including COMAC’s public stance on the petroleum price floor, undermined this principle, prompting a reassessment of its association.
Dispute Over Price Floor
The company noted that it has consistently advocated for the abolition of the price floor, a position differing from the majority of COMAC members. Star Oil expressed dissatisfaction that its perspective has not been adequately acknowledged in public statements and media engagements by the Chamber, which the company says has fueled negative perceptions and insinuations of anti-competitive motives.
Star Oil insisted that its opposition to the price floor is grounded in sound economic and market principles, arguing that the policy distorts pricing by preventing the swift transmission of international fuel prices and foreign exchange movements into the local market. The company said this approach ultimately weakens competition and disadvantages consumers, noting that similar arguments had previously led to the removal of the price floor for Bulk Distribution Companies.
Reason for Suspension
“In light of the above, 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,” the statement read.
The company concluded that its membership would remain suspended until the Chamber demonstrates a clear commitment to balanced representation and fair communication of divergent positions among its members.
The decision has intensified tensions within Ghana’s downstream petroleum sector and raised questions about unity and cohesion within COMAC, at a time when regulatory debates are intensifying.