Justice Ohene-Akoto is the Executive Director of ASEC
The Africa Sustainable Energy Centre (ASEC) has called for urgent structural reforms in Ghana’s petroleum downstream sector following Star Oil Limited’s indefinite suspension of its membership of the Chamber of Oil Marketing Companies (COMAC).
Star Oil, a leading indigenous oil marketing company (OMC), formally announced its withdrawal on Wednesday, January 21, 2026 citing unfair representation within COMAC and the association’s failure to advocate consumer-friendly pricing policies.
The company has been vocal in its opposition to the fuel price floor, arguing that the policy restricts competition and prevents cost savings from being passed on to consumers.
Having risen from 13th position in 2020 to market leader in 2025, Star Oil currently commands a 14 percent market share, with annual sales of about 819 million litres and a nationwide network of 254 filling stations.
Star Oil pulls out of COMAC membership over price floor dispute
The company contributes an estimated GH¢2.63 billion annually in taxes and levies, equivalent to approximately seven percent of Ghana’s IMF bailout package.
ASEC described the standoff as a defining moment for the downstream petroleum sector and a critical test of Ghana’s commitment to fair competition, innovation, and consumer welfare within the broader energy transition agenda.
According to ASEC, Star Oil’s advocacy for the removal of the price floor aligns with market liberalisation principles, allowing efficient operators to pass gains from favourable international prices and foreign exchange movements directly to consumers.
Originally introduced as a temporary safeguard against predatory pricing, the price floor has, ASEC argued, evolved into a structural barrier that penalises high-volume, cost-efficient operators while protecting less efficient business models.
The mechanism incorporates landed costs, taxes, levies, and a guaranteed minimum margin, effectively limiting competitive price reductions at the pump.
ASEC noted that the removal of price floors for Bulk Distribution Companies (BDCs) did not result in market instability, describing the continued application of the policy to OMCs as inconsistent with Ghana’s deregulation framework introduced in 2015.
The centre also raised concerns about governance and representation within COMAC. As the association’s largest financial contributor, Star Oil expected its pro-consumer views to be fairly represented.
“Trade associations must accommodate divergent perspectives to remain legitimate. Failure to do so risks turning such bodies into shields for inefficiency rather than platforms for reform,” ASEC stated.
Star Oil’s exit is expected to have significant implications for COMAC, including potential financial shortfalls that could affect its research, advocacy, and operational capacity.
ASEC cautioned that further withdrawals could weaken industry cohesion and diminish the association’s influence with regulators and government.
ASEC also criticised the National Petroleum Authority (NPA) and the Institute for Energy Security (IES) for defending the price floor on grounds of preventing predatory pricing and supply disruptions, arguing that Star Oil’s scale allows it to operate sustainably on lower margins without cross-subsidisation.
To resolve the impasse, ASEC proposed a set of reforms, including governance reforms within COMAC such as weighted communication protocols, the establishment of an independent research unit, and the integration of consumer advocacy into decision-making processes.
It also called for a phased withdrawal of the price floor, to be replaced with a competition monitoring framework that uses data analytics and cost-to-serve audits to identify genuine predatory pricing.
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