The Board Chairman of the Chamber of Oil Marketing Companies (COMAC), Mr Gabriel Kumi, has appealed to the chief executives of Star Oil Ghana and GOIL PLC to end their social media banter over the fuel price floor policy, warning that it could create acrimony among industry players.
Mr Kumi, who is also the Managing Director of Trinity Oil, noted that Star Oil Ghana and GOIL PLC are major players in the industry; therefore, continued public exchanges on social media could negatively affect both the industry and consumers.
“Star Oil and GOIL put together control about 30 percent of the market. Any disharmony between them can negatively impact the industry and consumers,” Mr Kumi told this portal.
His appeal follows recent comments by the Chief Executive Officer of Star Oil Ghana, Mr Philip Tieku, calling for the removal of the Fuel Price Floor Policy introduced by the regulator, the National Petroleum Authority (NPA), a few years ago after stakeholder engagement.
The policy was introduced to curb destructive price undercutting that could compromise fuel quality and harm consumers in the long run.
The social media exchanges between the CEO of Star Oil Ghana and the Group CEO of GOIL PLC, Mr Edward Abambire Bawa, began after GOIL PLC on Friday morning reduced pump prices for both petrol and diesel. Petrol prices dropped from GH¢10.99 per litre to GH¢9.99 per litre, while diesel prices were reduced from GH¢11.21 per litre.
Later the same morning, Star Oil Ghana also reduced its pump prices, with petrol dropping from GH¢10.56 per litre to GH¢9.97 per litre, and diesel declining from GH¢11.56 per litre to GH¢10.97 per litre.
Mr Tieku, in an interview on JoyNews Channel, called on the regulator to remove the fuel price floor and later took to Facebook to suggest that Star Oil could reduce fuel prices further.
“Imagine Star Oil pricing petrol at GH¢9.50 per litre after 10pm each night until 4am to support the nighttime economy when demand is lower… but that will be below the NPA floor price,” Mr Tieku wrote on Facebook.
This prompted a response from the Group CEO of GOIL PLC, Mr Edward Abambire Bawa, who also took to Facebook to reply to Mr Tieku’s comments.
“Some industry players are claiming that they can reduce prices further, yet in reality they cannot even compete at the approved floor price of GHS 9.80 for PMS in this pricing window.
“These are the NPA-approved floor prices. If, as an OMC, you are calling for the opportunity to reduce prices further, it is reasonable to ask why you have not first reduced your PMS price to at least the floor of GHS 9.80, instead of selling at GHS 9.97.
“Calling for deeper price reductions while pricing above the regulated floor undermines the credibility of that claim,” he wrote.
The comments by the two market leaders have since triggered widespread discussion on social media.
Mr Gabriel Kumi told this portal that both the CEOs of Star Oil Ghana and GOIL PLC are members of the COMAC board, adding that an emergency board meeting has been scheduled for Thursday to address the concerns.
He noted that the board would subsequently meet with the regulator, the NPA.
Mr Kumi said he believes in competition but emphasized that it must be fair competition.
He assured that the chamber would ensure the issues between the two companies are resolved to restore harmony within the industry.
“We shall arrive at a clear solution, and we shall continue to live in peace and harmony so we can grow the industry together,” he said.
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