Star Oil Limited has announced the suspension of its membership of the Chamber of Oil Marketing Companies (COMAC) with immediate effect, citing concerns over what it describes as unfair representation of its views within the Chamber.
In a formal letter by the CEO of star oil Philip Tieku addressed to the Chief Executive of COMAC, the company said the decision, which takes effect indefinitely, was taken after careful consideration. Star Oil noted that it has been a long-standing and responsible member of the Chamber and is currently its largest financial contributor.
According to the company, it has consistently supported COMAC’s activities on the understanding that the Chamber exists to fairly represent the collective interests of its members while accommodating differing views on policy and regulatory matters. However, Star Oil said recent developments have raised questions about the value of its continued membership.
The company expressed particular concern over public comments made by the Chief Executive of COMAC on various media platforms regarding the petroleum price floor. Star Oil said that although it has publicly advocated for the scrapping of the price floor, the rationale behind its position has not been adequately acknowledged or communicated by the Chamber in such discussions.
Star Oil argued that this omission has created a misleading public perception that its advocacy is driven by anti-competitive motives or an intention to engage in illicit practices, an implication the company described as unfair and troubling.
While acknowledging that the majority of COMAC members support the retention of the price floor, Star Oil said it is disappointed that the Chamber has been unable or unwilling to reasonably articulate the basis of its opposing view.
The company reiterated its position that the price floor hinders the timely transmission of international product prices and foreign exchange movements into pricing at the Oil Marketing Company (OMC) level. According to Star Oil, this distorts market signals, weakens competition, and ultimately disadvantages consumers. It added that similar arguments have previously been advanced by Bulk Distribution Companies (BDCs) in opposition to the price floor.
Star Oil said the failure to constructively engage these policy concerns in public discourse exposes the company to reputational risk while denying it a fair platform within the Chamber. As a result, it has opted to suspend its membership until COMAC demonstrates a clear commitment to balanced representation and fair communication of differing member positions.
Despite the suspension, Star Oil reaffirmed its commitment to operating within Ghana’s laws and regulations and to engaging constructively with regulators and other stakeholders in the downstream petroleum sector, expressing hope that conditions may allow for a more equitable relationship with COMAC in the future.