Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), Dr. Riverson Oppong has raised concerns over the sale of fuel below the regulated floor price, describing the practice as “alarming” and a threat to both consumers and the petroleum industry.
Dr. Oppong emphasized that the fuel price floor exists to safeguard the interests of Ghanaians and maintain stability in the downstream petroleum sector. “
As an organisation, we have no plans to ‘mafia’ Ghanaians with the price floor. Almost all Oil Marketing Companies (OMCs) approved of it,” he said on Onua FM.
He further clarified that any OMC found selling fuel below the floor price is referred to the National Petroleum Authority (NPA) for investigation, adding that “the floor price has been in existence for almost two years. It is unfortunate that it has become a topic of public discussion now, because ideally, it shouldn’t be debated openly,” Dr. Oppong said.
Addressing the reasons why some OMCs may undercut the floor price, he explained, “Some companies deliberately sell below the floor price to beat the competition. We have more than 200 marketing companies in the country, and survival in the sector is not easy.”
Commenting on Star Oil’s recent exit from COMAC, Dr. Oppong stated, “We do not dictate how our members sell their merchandise. Perhaps Star Oil has a strategy that allows them to sell below the floor price, maybe we should ask them.”
He added that the departure of any company should not undermine the regulatory framework governing OMCs. “Regardless of who exits, OMCs must be regulated. Star Oil may have left, but if it falters, we will address the matter. Star Oil is not the cheapest in the country. Several companies previously left COMAC but later returned. GOIL also left at one point and eventually came back.”
Dr. Oppong affirmed COMAC’s commitment to maintaining the fuel price floor while reviewing certain parameters of its implementation.
“The board’s decision is that we need to maintain the floor price but adjust some aspects of how the scheme is implemented. We understand that it is important to protect both the industry and consumers in accordance with NPA regulations,” he said.
