Chairman of the Chamber of Oil Marketing Companies (COMAC), Gabriel Kumi, says Star Oil’s decision to suspend its membership of the Chamber came as a complete surprise. Mr Kumi described the move by the industry’s market leader as unexpected, considering its long-standing influence and leadership role within the Association.“We didn’t see it coming,” he said.
His remarks follow Star Oil’s announcement earlier this week that it had indefinitely suspended its membership of COMAC amid disagreements over the petroleum price floor policy. Mr Kumi stressed that Star Oil has been a central figure within the Chamber and not a peripheral member.
“Star Oil has been a very key member of the Chamber,” he noted, adding that the company occupies the Vice Chairman position and has made significant contributions to COMAC’s growth and success.“Indeed, Star occupies the number two position , the vice chair of our Chamber and they have contributed a lot towards the success story of the Chamber,” he said.
Given that history, Mr Kumi said the decision to suspend membership was not anticipated. “So we never really thought it was going to get this far,” he added.
The COMAC Chairman acknowledged that Star Oil has, in recent times, expressed concerns about some policies pursued by the Chamber, particularly in relation to fuel pricing.
“We are very much aware of certain disagreements with certain policies that Star Oil has been expressing,” he said. However, he explained that those concerns did not appear severe enough to warrant such a drastic decision.
Star Oil, in announcing its suspension, cited concerns about the fair representation of members’ views and how the Chamber has handled the ongoing debate over the petroleum price floor.The price floor policy, introduced to prevent excessive price undercutting among oil marketing companies, remains one of the most contentious regulatory issues in the downstream petroleum sector. While some industry players argue it promotes market stability, others insist it distorts competition and negatively impacts consumers.Star Oil’s exit has intensified pressure on COMAC as it seeks to present a unified industry position, even as internal divisions over the policy continue to deepen.