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Star Oil Limited has declared the immediate suspension of its membership in the Chamber of Oil Marketing Companies (COMAC), a move that has escalated tensions in Ghana’s downstream petroleum sector and raised worries about cohesion within the industry organization.
In a statement released on Wednesday, January 21, the oil marketing company characterized the action as a suspension without a set end date, emphasizing that it was made after thorough evaluation.
Star Oil highlighted its status as a long-time and engaged member of COMAC, continuing to be its primary financial backer, having reliably aided the Chamber’s operational and advocacy efforts.
The company stated that its participation in COMAC was based on the belief in equitable representation of members’ interests and the consideration of diverse yet constructive opinions on policy and regulatory matters. Nevertheless, Star Oil stated that recent events had weakened this principle, leading it to reconsider its ongoing connection with the Chamber.
The core of the dispute lies in COMAC’s official position on the petroleum price floor, a divisive regulatory matter in the sector.
Star Oil announced that it has persistently advocated for the removal of the price floor, a stance that contrasts with the prevailing opinion of COMAC’s members.
The company conveyed disappointment that its viewpoint has not been appropriately recognized or sufficiently detailed, especially during recent media appearances by the Chamber’s Chief Executive.
Star Oil states that the absence of balanced communication has fueled unfavorable public views, leading to the belief that its stance is influenced by anti-competitive or unethical motives.
The company labeled these insinuations as unfair and harmful to its reputation, particularly considering its extensive contributions to the industry over the years.
Reaffirming its stance, Star Oil stated that its objection to the price floor is grounded in solid economic and market principles, contending that the policy skews pricing by hindering the quick transfer of international fuel prices and currency fluctuations into the domestic market.
It argued that this ultimately undermines competition and harms consumers, highlighting that similar reasoning had earlier led to the elimination of the price floor for Bulk Distribution Companies.
“In light of the above, Star Oil believes that continued membership of COMAC under the current circumstances exposes the company to reputational risk without providing a fair platform for its views to be represented,” the statement said.
“We have therefore decided to suspend our membership until the Chamber demonstrates a clear commitment to balanced representation and fair communication of divergent positions among its members.”
Source: Ghanatodayonline.com
