COMAC decides to retain petroleum price floor policy

The Chamber of Oil Marketing Companies (COMAC) has resolved to maintain the petroleum price floor policy for now, following deliberations at a board meeting held on Thursday, January 22, 2026.

Board Chairman of COMAC, Gabriel Kumi, confirmed the decision in an interview on Joy News, emphasising that while the policy remains in force, its success hinges on strict and consistent enforcement by the National Petroleum Authority (NPA).

COMAC is therefore calling on the regulator to ensure full compliance with the price floor, preventing any oil marketing company from selling petroleum products below the approved minimum prices.

“It was unanimous. And as I indicated, the industry is dynamic; we don’t know what will happen tomorrow. Maybe Star [Oil] is thinking ahead and trying to anticipate possible challenges with this policy by calling for it to be scrapped. When we get to that bridge, we will cross it,” Mr Kumi said.

“But for now, as things stand, we strongly believe that the policy should continue to exist. What we are calling for is proper implementation. If a floor has been set below which no company should sell, then we expect the regulator to strictly enforce it,” he added.

Addressing concerns raised by Star Oil, Mr Kumi acknowledged claims that some companies were already pricing below the floor, noting that enforcement failures lie with the regulator.

“I think one of Star’s arguments is that there are companies already pricing below the floor. The buck stops with the regulator to crack the whip and ensure that the policy it has put in place is working properly. The source of this problem is that the policy is not being enforced effectively,” he said.

The price floor is provided for under the 2024 Petroleum Products Pricing Guidelines and represents the minimum price set by the regulator. Under the guidelines, the NPA communicates applicable price floors at the start of each pricing window, and petroleum service providers are required to comply, with violations attracting fines of up to GH¢5,000.

The policy has remained contentious since its introduction, with some industry players arguing that it suppresses competition and limits potential price reductions for consumers.

The debate intensified during the second pricing window of January, as renewed price wars emerged across the downstream petroleum sector.

Controversy escalated after Star Oil’s Chief Executive Officer, Philip Tieku, suggested that petrol could be sold at GH¢9.50 per litre between 10:00 p.m. and 4:00 a.m. to support Ghana’s night-time economy, but for the constraints imposed by the price floor.

His remarks drew a response from the Managing Director of state-owned GOIL, Edward Bawa, who questioned the credibility of calls for further price reductions when some oil marketing companies were already selling above the regulated price floor of GH¢9.80 per litre for petrol (PMS) in the current pricing window.

These opposing views on pricing and competition prompted COMAC to convene its board meeting to deliberate on the future of the price floor policy and other industry concerns.

However, ahead of the meeting, Star Oil announced on Wednesday, January 21, that it had suspended its membership of COMAC with immediate effect, citing dissatisfaction with the Chamber’s handling of internal opposition to the policy.

Star Oil maintains that its call for the removal of the price floor has not been clearly articulated or adequately communicated by COMAC in both internal engagements and public discussions, creating the impression that its position is driven by anti-competitive motives.

The company argues that while it respects the majority view within COMAC to retain the policy, the Chamber has failed to sufficiently recognise and explain the basis of its dissent, despite Star Oil’s significant role in the downstream petroleum market.

COMAC, however, says it has initiated engagements with Star Oil and remains confident that the market leader will return to the Chamber as efforts continue to forge a unified industry position amid heightened competition and pricing pressures.

“At the end of the day, Star Oil will come back,” Mr Kumi said.