The Board Chairman of the Chamber of Oil Marketing Companies (COMAC), Gabby Kumi, has called for calm amid rising tensions involving two major players in Ghana’s downstream petroleum sector, Star Oil and GOIL. Speaking to Energy Crossroad, Mr Kumi noted that the two companies together control nearly 30 per cent of Ghana’s downstream petroleum market, warning that any discord between them could have far-reaching implications for the industry and consumers. He disclosed that both Star Oil and GOIL are members of the COMAC Board, prompting the chamber to convene an emergency board meeting to engage all parties and address the emerging concerns. “Given their significance in the sector, any disharmony between them affects the entire industry and ultimately impacts consumers. That is why we have called for an emergency board meeting at which both parties will be present,” Mr Kumi said. According to him, the outcome of the meeting will guide subsequent engagements with the National Petroleum Authority (NPA) on the appropriate way forward. The intervention follows public comments by the Chief Executive Officer of Star Oil, Philip Tieku, who argued in a social media post last week that scrapping the Petroleum Price Floor Programme would allow fuel prices to fall further under current market conditions. He maintained that the policy denies consumers the full benefit of declining fuel prices at the pumps. GOIL, Ghana’s national oil marketing company, has however indicated it does not support the removal of the price floor policy. The differing positions have emerged against the backdrop of intensified competition in the downstream sector, with both GOIL and Star Oil rolling out price reductions in efforts to retain customers and expand market share. Mr Kumi emphasised that while competition is healthy and necessary, it must be conducted in a fair manner that promotes stability and sustainable growth within the industry. “I believe in competition, but I strongly believe in fair competition. We are all stakeholders in the same industry, and it is important that we work together to maintain peace and harmony so we can grow the sector to support Ghana,” he said. He expressed confidence that the ongoing discussions would lead to a clear resolution, allowing the industry to move forward in a spirit of cooperation and mutual respect. The Petroleum Price Floor Programme was introduced by the NPA in April 2024 and requires Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) to comply with minimum fuel pricing guidelines. The policy is intended to prevent price distortions and promote transparency, stability, and sustainability in the downstream petroleum market. Despite this, several industry stakeholders and think tanks, including the Chamber of Petroleum Consumers (COPEC) and the Centre for Environmental Management and Sustainable Energy (CEMSE), have called for the scrapping of the price floor policy, arguing that its removal would better support consumers amid favourable market conditions.
