The Board Chairman of the Chamber of Oil Marketing Companies (COMAC), Gabriel Kumi, has issued an urgent appeal to industry giants Star Oil and GOIL, urging them to exercise restraint as a brewing “price war” threatens to destabilise the downstream petroleum sector.
The friction follows the implementation of the National Petroleum Authority’s (NPA) fuel price floor policy, a regulatory measure designed to prevent predatory pricing. Tensions escalated recently when Star Oil reportedly suggested it could drop petrol prices as low as GHC9.50, undercutting the current floor, if the policy were scrapped. GOIL, the state-owned market leader, has pushed back, questioning the sustainability of such aggressive cuts.
Fair Competition vs. Market Stability
Speaking to 3Business, Kumi emphasised that while competition is healthy for the consumer, it must be conducted within a framework that ensures the long-term survival of all players. “The way forward to bringing sanity and protecting the downstream petroleum sector is fair competition,” Kumi noted.
He cautioned that an unchecked price war could lead to “market distortions” that eventually hurt the very consumers the companies aim to serve.
The Policy at a Glance
The NPA’s price floor policy has become a polarising topic in early 2026. Proponents argue it protects smaller OMCs from being priced out of the market, while critics, including some consumer advocacy groups, believe it prevents Ghanaians from enjoying the full benefits of a stronger Cedi and falling global oil prices.
Divided Perspectives on the Price Floor
The NPA’s price floor policy has become a polarizing topic in early 2026. Different stakeholders maintain distinct stances on how the regulation affects the market:
- The NPAviews the floor as essential to prevent tax evasion and protect the industry from total collapse due to unsustainable pricing.
- Star Oilargues that the policy stifles healthy competition and keeps prices artificially high for the Ghanaian consumer.
- GOILmaintains its pricing within the current regulatory limits and remains wary of “predatory” price cuts that could undermine market stability.
- COMACcontinues to advocate for “sanity,” seeking a middle ground between aggressive competition and necessary regulation.
Kumi’s call for “calm” serves as a reminder that the stability of Ghana’s energy sector relies on a delicate balance between aggressive market strategies and regulatory compliance.
Meanwhile, the Chamber of Oil Marketing Companies will convene an emergency meeting on Wednesday, January 21, 2026, to adopt a unified position on the Petroleum Price Floor Programme, amid growing internal disagreements over the policy.
Source: 3news
