The Institute for Energy Security (IES) has called on the Chamber of Oil Marketing Companies (COMAC) and Star Oil to resolve their differences amicably following Star Oil’s decision to suspend its membership over the price floor policy.
IES says the move weakens the collective voice of the industry at a critical time, especially as engagements with the National Petroleum Authority (NPA) approach. Speaking on Morning Starr on Starr FM, IES Research and Policy Analyst Derrick Emmanuel Xatse warned that Star Oil could ultimately be disadvantaged if it maintains a rigid stance.
“It is very unfortunate for us to arrive at this situation because if you have a major player like Star Oil, serving about 10.7 per cent of the market, trying to pull out of its umbrella body, it is very unfortunate,” he said.
Mr Xatse questioned Star Oil’s opposition to the price floor policy, noting that COMAC members account for about 89 per cent of the fuel market. “If you were not the market leader today, would you have been advancing the same argument?” he asked, adding that suspending membership “will not be in your benefit in the long run.”
He further stressed that leaving COMAC does not exempt any company from regulatory control. “Even if you pull out of COMAC, you are still within the regulator. What the regulator agrees on is what you have to go by,” he noted.
Calling for dialogue, Mr Xatse urged industry players to return to negotiations. “We don’t need a divided front at this time. Go back to the negotiation table, engage your industry players within the downstream and the regulator to arrive at a consensus,” he said.
