The Chairman of the Chamber of Oil Marketing Companies (COMAC) says Star Oil was not pushed out of the Association but was on the losing side of a majority decision on the petroleum price floor.
Gabriel Kumi, speaking on Joy News’ PM Express, Business Edition on Thursday, said the company’s suspension followed internal disagreements, not any targeted action by the Chamber.
“Yes, you did,” he said, responding to a suggestion that the exit had been anticipated. “You are an industry boy, so maybe you had more information than we did.”
He stressed that Star Oil remains one of the most important players within COMAC.
“Let me say that Star Oil is a very key member of the Chamber,” he said.
The comments follow Star Oil’s announcement of an indefinite suspension of its membership, citing dissatisfaction with COMAC’s handling of the ongoing debate over the petroleum price floor.
Mr Kumi said the Chamber acknowledged Star Oil’s position but insisted that decisions must follow democratic processes.
“I’m happy in the letter that Star wrote to us, it did admit that it respects the view of the majority,” he said.
He said the Chamber also respects dissenting views. “We also respect the view of the minority,” he added.
However, he said collective decisions cannot be stalled indefinitely. “At the end of the day, the majority decision carries the day,” Mr Kumi said.
He explained that the petroleum price floor policy at the centre of the dispute was not imposed arbitrarily.
“This floor pricing issue, the idea was pushed forward by the Chamber about two years ago with the National Petroleum Authority, and it was accepted,” he said.
He said implementation followed, though not without challenges. “Along the line, there have been challenges with the policy, I must say,” he said.
According to him, those challenges triggered internal debate and dissent. “And I think that is what got our member to express those things,” he said.
He said those expressions eventually led to Star Oil’s decision.
“And unfortunately, those expressions find their way in them, saying that they want to be suspended from the Chamber,” he said.
Mr Kumi said COMAC accepted the decision without rancour. “But we respect that decision of Star Oil,” he said.
Still, he maintained that the Chamber’s position remains unchanged.
“At the end of the day, the majority decision is that, at the moment, as it stands, the floor pricing policy is good for the industry,” he said.
He said the policy serves a protective function. “It protects the industry and is the way to go,” he added.
Responding to concerns that larger companies may have dominated the decision-making process, Mr Kumi rejected that claim.
“At a Chamber level, at the board level, everybody has one vote,” he said.
He said size does not translate into influence. “No matter how big you are, you still have one vote,” he said.
He stressed that without majority backing, the policy would not have moved forward. “If it wasn’t the majority decision, we couldn’t push it,” he said.
He said the petroleum price floor did not fall into that category.
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Source: www.myjoyonline.com