• Star Oil Limited suspended its membership in Ghana’s Chamber of Oil Marketing Companies over disagreements on fuel price floor communication.

• The company said COMAC failed to reflect its position in favor of scrapping the regulated retail price floor.

• The move followed the regulator’s decision to maintain the price floor despite industry calls for its removal.

In Ghana, Star Oil Limited announced on Wednesday, January 21, the immediate and indefinite suspension of its membership in the Chamber of Oil Marketing Companies (COMAC), the association representing petroleum marketing companies in the country.

The company linked its decision to a disagreement over the management and communication of members’ positions regarding the so-called “price floor” mechanism. The regulation sets a minimum retail price for gasoline, diesel and liquefied petroleum gas (LPG) and authorities recalculate it every two weeks based on import costs, taxes and levies.

Within this framework, Star Oil said COMAC failed to accurately reflect its position in favor of removing the price floor in recent public statements. The company pointed specifically to media appearances by COMAC’s leadership.

According to Star Oil, this partial presentation of its stance contributed to unfavorable public perceptions of its motivations. The company said some interpretations portrayed its approach as anti-competitive, a characterization it formally rejected.

Star Oil operates about 240 service stations nationwide and ranks among COMAC’s long-standing members and largest financial contributors. The company said it decided to withdraw from the association “until the Chamber demonstrates a clear commitment to balanced representation and fair communication of differing positions among its members.”

This development came after Ghana’s National Petroleum Authority reaffirmed on January 19 its intention to maintain the price floor mechanism. The regulator reiterated its stance despite repeated calls for its removal from parts of the industry.

The authority said it needs the mechanism to preserve stability in the downstream sector, particularly during periods of price volatility or financial stress among fuel distributors.

According to an internal COMAC source cited by local media outlet JoyNews, the association has initiated informal discussions with Star Oil. The talks aim to review the company’s concerns and explore the possibility of a future return.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange J. A. de BERRY QUENUM