The Chamber of Oil Marketing Companies (COMAC) has intensified calls for a broad overhaul of Ghana’s downstream petroleum industry, warning that the continued focus on the petroleum price floor risks overshadowing more fundamental structural and regulatory shortcomings within the sector.
The Chamber recognises that the price floor policy has played a role in stabilising market activity but emphasised that it cannot, on its own, resolve the industry’s deep-rooted challenges.
“The price floor has introduced a measure of order into the market, but it is far from a comprehensive solution,” COMAC noted. “Shifting the conversation towards compliance, oversight and long-term sustainability, rather than relying solely on price controls, is essential to safeguarding public revenue, protecting consumers and building a durable industry.”
COMAC stressed that the immediate priority should be a sector-wide clean-up to ensure that law-abiding oil marketing companies are able to compete fairly. The Chamber estimates that non-compliant operators account for roughly 15 percent of petroleum volumes, a development it says distorts competition, weakens enforcement and threatens government revenue mobilisation.
The Chamber cautioned that unless these underlying deficiencies are addressed, the price floor would function only as a short-term stabilising tool rather than a lasting answer to price instability and market inefficiencies.
On licensing matters, COMAC argued that the current framework no longer reflects the realities, risks and operational structure of the modern downstream petroleum market. It disclosed that no fewer than 53 inactive oil marketing companies and LPG marketing firms continue to retain valid licences despite consistently failing to lift products. According to the Chamber, this situation “skews competition and erodes regulatory authority.”
To address the issue, COMAC is proposing the withdrawal of licences from dormant marketers that fail to lift products over a continuous six-month period, alongside tougher entry conditions for new market participants. These include demonstrable financial strength and a proven history of regulatory compliance prior to licensing approval.
The Chamber further called for more robust and intelligent enforcement by the National Petroleum Authority (NPA), recommending the adoption of a tiered sanctions regime that extends beyond financial penalties. The framework would begin with formal cautions and mandatory compliance education for initial breaches, progressing to heavier fines, temporary licence suspensions and, ultimately, permanent licence cancellations with public disclosure for repeat offenders.
COMAC also urged the regulator to periodically reassess the deregulation policy, strengthen structured engagement with industry stakeholders and deploy digital compliance tools, such as functional Automatic Tank Gauging systems, to enable real-time monitoring across the sector.
Beyond regulatory enforcement, the Chamber pointed to deeper structural imbalances arising from market congestion and concentration. It observed that although the downstream space is crowded, control of volumes is highly skewed, with approximately 30 percent of operators commanding over 70 percent of total market throughput. This concentration, COMAC said, intensifies price undercutting, squeezes profit margins and places smaller operators at risk.
In response, the Chamber is calling for a strong mergers and consolidation agenda to rationalise the industry and eliminate operators that fail to meet established operational and compliance benchmarks.
“The way forward is unambiguous: sanitise the market, tighten enforcement, eliminate inactive licences and allow compliant competition to flourish,” COMAC stated.
The Chamber maintained that these reforms are critical for the petroleum sector to generate sustainable returns for the state, consumers and investors, even as discussions around the price floor policy continue.
Meanwhile, COMAC has agreed to retain the petroleum price floor for the present. The decision followed a board meeting held on Thursday, January 22, 2026, and was confirmed by the Chamber’s Board Chairman, Gabriel Kumi, in an interview with Joy News. He underscored that the success of the policy ultimately hinges on firm and consistent enforcement by the National Petroleum Authority.