The Africa Sustainable Energy Centre (ASEC) has called for urgent reforms in Ghana’s petroleum downstream sector following the indefinite suspension of Star Oil Limited’s membership from the Chamber of Oil Marketing Companies (COMAC).Star Oil, Ghana’s leading indigenous Oil Marketing Company (OMC), cited unfair representation and a failure to advocate for consumer-friendly policies, particularly the contentious petroleum price floor, as reasons for its withdrawal. The company, which grew from 13th place in 2020 to the top OMC in 2025, holds a 14 per cent market share, operates 254 filling stations, sells over 819 million litres annually, and contributes GHS 2.63 billion in taxes and levies—equivalent to seven per cent of the IMF bailout.ASEC described Star Oil’s exit as a pivotal moment, highlighting systemic issues in the downstream sector and the need for policies that promote fair competition, innovation, and consumer welfare.“Star Oil’s withdrawal exposes a misalignment between efficient market players and the protective mechanisms of COMAC and the National Petroleum Authority (NPA), particularly the price floor policy,” ASEC said in a statement.The think tank argued that the current price floor, initially designed to prevent predatory pricing, now shields inefficient operators while limiting the ability of high-volume, cost-efficient firms to pass savings from international price declines and forex gains directly to consumers. ASEC further noted that removing price floors for Bulk Distribution Companies (BDCs) in the past did not lead to market instability, raising questions about inconsistent application across the sector.Consumer Advocacy and CompetitionStar Oil has positioned itself as a pro-consumer advocate, proposing innovations such as night-time fuel discounts. ASEC supports the company’s stance, emphasizing the importance of trade associations reflecting diverse industry views to maintain credibility and effectiveness.According to ASEC, COMAC now faces potential financial shortfalls and a weakening of its influence, as Star Oil’s exit could trigger further resignations and erode consensus within the industry. Public perception increasingly frames COMAC as a “protective cartel,” prioritizing margins over consumer welfare.Policy RecommendationsTo address the current impasse, ASEC recommends:• COMAC Governance Overhaul: Introduce weighted communication protocols, an independent research wing, and integrated consumer advocacy to ensure balanced representation.• Phased Price Floor Withdrawal: Replace the floor with a Competition Monitoring Framework using data analytics to identify genuine predatory pricing, including “Cost-to-Serve” audits for OMCs.• Technological Integration: Implement AI-driven dynamic pricing models to enable time-of-use discounts and improve market efficiency.
Background: Star Oil, COMAC, and the Price Floor Controversy
The dispute traces back to Star Oil’s push for the removal of the NPA-mandated price floor, a policy designed to prevent predatory pricing and stabilize the market. While the price floor was intended as a temporary safeguard, Star Oil has argued that it now unfairly penalizes efficient operators while protecting less efficient companies. The company claims this limits its ability to pass savings from international fuel price declines and foreign exchange gains to consumers.
Star Oil’s concerns have been amplified by COMAC’s handling of the issue. As the Chamber representing major OMCs, COMAC is expected to balance industry and consumer interests. However, Star Oil has accused COMAC of sidelining its pro-consumer stance, portraying its position as anti-competitive, and failing to advocate adequately for market liberalization. The National Petroleum Authority (NPA), which enforces the price floor, has defended the policy, citing risks of predatory pricing and supply disruptions.
Star Oil’s Market Impact-.,MHGFD1′
Star Oil has grown rapidly, rising from 13th place in 2020 to the top OMC in 2025. The company holds a 14 per cent market share, operates 254 filling stations, sells over 819 million litres annually, and contributes GHS 2.63 billion in taxes and levies—equivalent to seven per cent of Ghana’s IMF bailout. Its scale allows it to sustainably offer lower prices without cross-subsidizing losses, a factor central to its dispute with COMAC and the NPA.
ASEC’s Position
ASEC views Star Oil’s exit as a critical turning point for the sector. The think tank supports the company’s push for market liberalization and consumer-friendly policies, emphasizing that trade associations must reflect diverse industry views to maintain credibility and avoid becoming shields for inefficiency.
“Star Oil’s withdrawal highlights systemic issues in the downstream sector and the need for policies that promote fair competition, innovation, and consumer welfare,” ASEC said in a statement.
Implications for the Sector
Star Oil’s departure from COMAC poses financial and operational challenges for the chamber, potentially weakening its lobbying power with the NPA and the government. Public perception is increasingly casting COMAC as a “protective cartel,” prioritizing margins over consumer welfare. Industry observers also note that aggressive price competition between Star Oil and other major players, like GOIL, has forced smaller OMCs to adjust prices rapidly, intensifying a de facto price war at the pumps.
ASEC stressed that reforms are critical to restoring stability, improving transparency, and ensuring Ghanaian consumers benefit from a truly competitive downstream petroleum market.