“We didn’t see it coming” – COMAC Chairman on Star Oil’s Surprise Suspension

By Life Pulse Daily | Published: January 23, 2026

Introduction

The downstream petroleum sector in Ghana has been rocked by a significant development that threatens to alter the dynamics of the Chamber of Oil Marketing Companies (COMAC). In a candid interview on Joy News’ PM Express Business Edition, the Chairman of COMAC, Gabriel Kumi, expressed profound surprise at the decision by Star Oil to suspend its membership. This move, described by the Chairman as unexpected, comes amidst a heated debate regarding the petroleum price floor policy—a regulatory framework that has polarized stakeholders across the industry.

Star Oil, a major player in the market, has cited concerns over fair representation and the handling of the price floor controversy as reasons for its indefinite exit. As the Vice Chair of COMAC, Star Oil’s departure is not merely a procedural change; it signals a potential fracture within a chamber that has historically aimed to present a unified front. This article explores the background of this development, analyzes the implications of the price floor policy, and provides practical insights into the future of oil marketing in the region.

Key Points

Background

To understand the gravity of Star Oil’s suspension, it is essential to examine the institutional framework of COMAC and the specific role Star Oil has played within it.

The Chamber of Oil Marketing Companies (COMAC)

COMAC serves as the primary trade association for Oil Marketing Companies (OMCs) in Ghana. Its mandate includes advocacy, regulatory compliance, and fostering cooperation among stakeholders in the downstream petroleum sector. The Chamber has been instrumental in engaging with government bodies like the National Petroleum Authority (NPA) to ensure industry stability and growth.

Star Oil’s Strategic Position

Star Oil is not merely a participant in the Chamber; it is a heavyweight. As noted by Chairman Gabriel Kumi, Star Oil occupies the number two position, serving as the Vice Chair. This leadership role implies that the company has been deeply embedded in the strategic direction of COMAC. “Star Oil has been a very key member of the Chamber,” Kumi stated, highlighting that the company has contributed significantly to the success story of the association over the years. Consequently, the loss of such a member is a blow to the Chamber’s collective strength and unity.

Analysis

The suspension of Star Oil is symptomatic of deeper issues within the downstream petroleum sector, specifically regarding regulatory intervention in market pricing.

The Petroleum Price Floor Controversy

The central point of contention is the petroleum price floor. This policy was introduced to regulate the market and prevent OMCs from engaging in predatory pricing—selling fuel below cost to drive competitors out of business. Proponents argue that the price floor protects the financial health of OMCs, ensuring they remain solvent and capable of maintaining supply chains. They contend that without a floor, a “race to the bottom” could compromise service quality and infrastructure investment.

Conversely, critics, including Star Oil, argue that the price floor distorts free market competition. They suggest that the policy artificially inflates prices, ultimately hurting consumers who might otherwise benefit from competitive pricing. The disagreement highlights a classic economic tension between market regulation and free enterprise. Star Oil’s exit suggests that these policy differences have reached a breaking point where internal dialogue within COMAC is perceived as insufficient or ineffective.

Internal Governance and Representation

Beyond the economic policy, Star Oil’s decision points to issues of governance. The company expressed concerns regarding the “fair representation of members’ views.” In a trade chamber, maintaining consensus is challenging, especially when regulatory policies have divergent impacts on members. If a major player like the Vice Chair feels their perspective is marginalized, it raises questions about the inclusivity of COMAC’s decision-making processes. This dynamic suggests that the Chamber may need to reevaluate how it mediates internal conflicts to prevent further fragmentation.

Impact on COMAC’s Unity

Chairman Kumi’s reaction—”We didn’t see it coming”—indicates a disconnect between the leadership’s perception of member satisfaction and the reality on the ground. While Kumi acknowledged that Star Oil had raised concerns about certain policies, he noted, “We didn’t really think that it was going to get this far.” This admission suggests that the severity of Star Oil’s dissatisfaction was underestimated. The indefinite suspension of such a key member weakens COMAC’s leverage when negotiating with regulatory bodies and the government, as a divided chamber presents a fractured front.

Practical Advice

For stakeholders in the downstream petroleum sector, including investors, policy makers, and consumers, the following practical steps and considerations are relevant in light of this development.

For Oil Marketing Companies (OMCs)

• Review Compliance Strategies: With the price floor policy under scrutiny, OMCs should closely monitor regulatory updates from the NPA to ensure their pricing models remain compliant while exploring cost-efficiency measures.
• Engage in Dialogue: Companies should actively participate in COMAC forums to ensure their voices are heard. If internal mechanisms fail, OMCs must assess the risks of independent action versus collective bargaining.
• Market Positioning: Star Oil’s exit may create a vacuum in certain market segments. Competitors should analyze how to position themselves to capture market share without engaging in the price undercutting that the price floor aims to prevent.

For Consumers

• Monitor Fuel Prices: Regulatory changes and industry disputes can lead to price volatility. Consumers should stay informed about weekly price adjustments announced by the NPA.
• Understand the Impact of Policy: Recognize that the debate over the price floor is a balance between preventing market monopolies and ensuring affordable fuel prices. Advocacy for transparent policies is crucial.

For COMAC Leadership

• Strengthen Conflict Resolution: Implement robust mechanisms to address member grievances before they escalate to suspension.
• Transparent Communication: To rebuild trust, COMAC must clearly articulate how member views are integrated into policy positions, particularly regarding contentious issues like the price floor.

FAQ

Conclusion

The suspension of Star Oil from COMAC marks a critical moment in the Ghanaian downstream petroleum sector. What began as a policy disagreement over the petroleum price floor has escalated into a leadership crisis within the industry’s primary trade body. Chairman Gabriel Kumi’s admission that the move was unexpected highlights a need for greater transparency and proactive engagement within COMAC.

As Star Oil steps back from its Vice Chair role, the Chamber faces the dual challenge of addressing the specific concerns raised by its former member and maintaining a cohesive voice in ongoing regulatory discussions. The outcome of this rift will likely influence the future of fuel pricing regulations and the competitive landscape of the oil marketing industry in Ghana. For now, the sector watches closely to see if this “surprise” exit will trigger a broader realignment of industry alliances.