Star Oil Exits COMAC, ASEC Calls for Urgent Reforms
The Africa Sustainable Energy Centre (ASEC) has expressed serious concern over Star Oil Limited’s indefinite suspension of its membership from the Chamber of Oil Marketing Companies (COMAC).
ASEC says the move underscores a growing disconnect between market-efficient operators and the protective policies enforced by COMAC and the National Petroleum Authority (NPA), particularly the controversial price floor mechanism.
Star Oil announced its withdrawal on Wednesday, January 21, 2026, citing unfair representation and the chamber’s failure to advocate for consumer-friendly policies.
“As Ghana’s market leader with a 14% market share, annual sales of 819 million litres, 254 filling stations and fiscal contributions of GHS 2.63 billion in taxes and levies equivalent to 7% of the IMF bailout Star Oil’s decision highlights systemic issues within the sector,” ASEC stated.
ASEC described the development as a pivotal moment for advancing a just energy transition in Africa, emphasizing equity, innovation and consumer welfare. “The suspension signals a breakdown in collective bargaining,” the centre added.
The organisation noted that Star Oil’s push to abolish the price floor aligns with market liberalisation principles, allowing efficient operators to pass savings from international price drops and favourable forex movements directly to consumers.
ASEC explained that the price floor, initially intended as a temporary safeguard against predatory pricing, has instead become a barrier to competition, penalising high-volume operators while protecting less efficient models with higher landed costs, taxes, levies, and minimum operational margins.
The centre expressed support for Star Oil, noting that the earlier removal of price floors for Bulk Distribution Companies (BDCs) did not destabilise the market.
“This inconsistency undermines deregulation efforts started in 2015 and hinders the transmission of global efficiencies to local pumps. Star Oil’s move reflects representational integrity. As COMAC’s largest financial contributor, the company expected its pro-consumer stance to be fairly represented. COMAC’s leadership, however, branded the position as anti-competitive, damaging the company’s reputation,” ASEC stated.
Implications for COMAC and the Sector
ASEC warns that Star Oil’s exit may create financial shortfalls for COMAC, potentially limiting research, advocacy, and operational activities, and could trigger additional resignations.
The departure also weakens industry consensus and lobbying power with the NPA and government, reinforcing perceptions of COMAC as a protective cartel prioritising margins over public interest.
ASEC criticised the NPA and Institute for Energy Security (IES) for defending the floor on grounds of predatory pricing and supply risks. The centre argued that Star Oil’s scale allows for sustainable low margins without cross-subsidisation.
ASEC further suggested that Ghana’s crowded market, with over 200 OMCs, could benefit from consolidation to about 50 efficient firms, improving oversight and reducing costs.
Recommendations for Reform
ASEC proposed the following measures to resolve the impasse:
1. COMAC Governance Overhaul: Implement weighted communication protocols, establish an independent research wing, and integrate consumer advocacy for balanced representation.
2. Phased Price Floor Withdrawal: Replace the floor with a Competition Monitoring Framework, using data analytics and “Cost-to-Serve” audits to detect predatory pricing.
3. Technological Integration: Deploy dynamic pricing models supported by AI and digital tools to enable time-of-use discounts.
