The Ghanaian petroleum downstream sector is currently embroiled in a significant public debate following Star Oil Limited’s decision to indefinitely suspend its membership from the Chamber of Oil Marketing Companies (COMAC). This controversy, centered on the implementation and impact of the petroleum price floor, has ignited discussions about competition, consumer welfare, and the true meaning of deregulation in Ghana.

Star Oil, a long-standing and the largest financial contributor to COMAC, announced its withdrawal on Wednesday, January 21, 2026, citing fundamental disagreements with the Chamber’s handling of the price floor debate. The company stated that it joined COMAC with the expectation of a balanced platform that fairly represents members' collective interests and accommodates diverse policy positions. However, recent developments, particularly COMAC’s public stance and perceived failure to adequately explain Star Oil’s position on abolishing the price floor during media engagements, led to doubts about the Chamber’s inclusiveness and balance. Star Oil believes its advocacy for downward price transmission has been wrongly portrayed, leading to negative public perceptions and a feeling of being victimized for holding its position.

In response, Dr. Riverson Oppong, the Chief Executive Officer of COMAC, dismissed suggestions that the Chamber was singling out Star Oil. In an interview on Channel One TV on Wednesday, January 21, Dr. Oppong clarified that COMAC’s position on the price floor is not an accusation against any individual company. He explained that the price floor was originally introduced to prevent certain actions by Oil Marketing Companies (OMCs) that could encourage practices harmful to the industry. This policy, a result of collaboration between industry players and the National Petroleum Authority (NPA), aimed to address challenges in the downstream sector. COMAC is currently engaging the NPA to assess the policy's objectives, compliance issues, and emerging challenges, and plans to release a public statement to clarify its position, reaffirming its commitment to dialogue and sector stability without undermining fair competition. Furthermore, COMAC is actively taking steps to bring Star Oil back, with informal engagements already underway, and an emergency board meeting scheduled for Thursday, January 22, 2026, to adopt a common position and foster unity among members, with Chairman Gabriel Kumi expressing hope for a united front.

The Chamber of Petroleum Consumers (COPEC), through its Executive Secretary Duncan Amoah, has strongly criticized what it calls the unfair treatment of Star Oil. Speaking on Citi FM on Wednesday, January 21, Mr. Amoah argued that Star Oil is being victimized for advocating fuel price reductions, exposing fundamental weaknesses in Ghana’s petroleum pricing framework. He has consistently opposed the price floor, asserting that if any intervention were necessary, it should have been a price ceiling to prevent excessive charges, not a floor that benefits higher-priced OMCs. Mr. Amoah noted that COPEC raised similar concerns as early as 2024 when the price floor was introduced, underscoring that Star Oil’s position is neither novel nor isolated, and criticizing the backlash against the company as unjust and harmful to its corporate image.

Lom Nuku Ahlijah, a Ghanaian lawyer and energy sector expert, further contextualizes this dispute as a deeper policy question about managing liberalized markets in sensitive sectors. Ghana formally deregulated petroleum pump prices in 2015 to end administered prices and subsidies, allowing competition to discipline margins. However, concerns about aggressive price undercutting led the NPA, after multi-stakeholder consultations, to introduce amended pricing guidelines in 2024, empowering it to publish minimum pump price floors. The NPA justified the floor as reflecting statutory taxes, levies, and fixed distribution costs, theoretically preserving competition above this baseline, preventing