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COMAC Forms Team to Engage Star Oil Following Suspension Over Price Floor Dispute

Introduction

The downstream petroleum sector in Ghana is currently navigating a significant internal conflict following the suspension of Star Oil from the Chamber of Oil Marketing Companies (COMAC). In response to this development, COMAC has swiftly established a specialized delegation to initiate dialogue with the estranged member. This article provides a comprehensive analysis of the situation, exploring the timeline of events, the underlying issues regarding the petroleum price floor, and the implications for the industry at large.

Key Points

Background

The Chamber of Oil Marketing Companies (COMAC) serves as a pivotal regulatory and advocacy body within Ghana’s downstream petroleum industry. Its membership comprises major Oil Marketing Companies (OMCs) operating across the nation.

The Suspension of Star Oil

Earlier this week, Star Oil, a prominent player in the sector, announced an indefinite suspension of its membership in COMAC. The company cited dissatisfaction with how the Chamber handled discussions regarding the “petroleum price floor.” The price floor is a regulatory mechanism designed to prevent predatory pricing and ensure that fuel is not sold below a certain benchmark, protecting both OMCs and consumers from market volatility.

Escalating Industry Tensions

The downstream petroleum innovator has witnessed rising tensions in recent months. While competition is a natural aspect of the market, industry leaders noted a shift from healthy commercial rivalry to hostile interactions. Both Star Oil and GOIL hold seats on the COMAC board, placing them at the center of policy discussions. The disagreement over the price floor has reportedly spilled over into personal conflicts, prompting the Chamber to seek resolution.

Analysis

To understand the gravity of this suspension, it is essential to analyze the statements provided by Gabriel Kumi, the Chairman of COMAC, during an appearance on Joy News’ PM Express Business Edition.

The Nature of the Engagement Team

Contrary to the formation of a formal committee, Mr. Kumi clarified that COMAC has assembled a “small group” or delegation. This decision reflects a strategic approach to negotiation—ensuring agility and focused communication rather than bureaucratic delay. The goal of this group is straightforward: to facilitate Star Oil’s return to the Chamber and restore unity within the sector.

Timeline and Meeting Dynamics

A critical aspect of the narrative is the timeline of events. There were public perceptions that COMAC’s emergency assembly was a knee-jerk reaction to Star Oil’s suspension. However, Mr. Kumi firmly debunked this. He explained that the emergency meeting was scheduled as early as Monday, days before Star Oil officially suspended its membership on Wednesday.

The meeting was initially slated for Monday or Tuesday but was pushed to Thursday to ensure a “full house.” This logistical adjustment highlights the Chamber’s commitment to inclusive decision-making, ensuring all key stakeholders, including those who had traveled, could participate.

From Competition to Conflict

Mr. Kumi described the atmosphere leading up to the suspension as “nasty.” What began as standard market competition evolved into intensified personal attacks. Star Oil’s decision to suspend its membership appears to be a reactive measure to this hostile environment and a strategic disagreement over regulatory enforcement.

Practical Advice

For stakeholders in the downstream petroleum sector, including investors, consumers, and regulatory bodies, this situation offers several lessons and considerations.

For Industry Stakeholders

Prioritize Dialogue Over Disengagement: While suspension is a legitimate right of membership, continuous engagement is vital for policy stability. The formation of a delegation by COMAC demonstrates the value of direct negotiation to resolve disputes.

Adhere to Regulatory Frameworks: The petroleum price floor exists to maintain market sanity. OMCs must balance competitive pricing strategies with compliance to avoid regulatory friction.

For Consumers

Monitor Fuel Prices: Internal conflicts within regulatory bodies like COMAC can sometimes lead to price volatility. While the Chamber maintains that the price floor supports stability, consumers should stay informed about pricing trends.

FAQ

Conclusion

The suspension of Star Oil from COMAC highlights the critical importance of governance and conflict resolution within the downstream petroleum sector. While the dispute centers on the price floor policy, the underlying issues of competition and personal tensions require careful mediation. The formation of a delegation by COMAC is a positive step toward de-escalation and restoring industry cohesion. As negotiations proceed, the sector watches closely, hoping for a resolution that supports both fair competition and regulatory compliance.

Sources

• Primary Source: Joy News’ PM Express Business Edition interview with Gabriel Kumi, Chairman of COMAC.
• Reference: Life Pulse Daily / MyJoyOnline (Original Report Date: 2026-01-23).