Star Oil withdraws from COMAC

Leading marketing local company, Star Oil Limited, has announced the immediate suspension of its membership of the Chamber of Oil Marketing Companies (COMAC).

A press statement released by the company yesterday said the move was indefinite and a decision taken after careful consideration.

It said it had been a long-standing and active member of COMAC and remains its largest financial contributor, having consistently supported the chamber’s operations and advocacy work.

The company explained that its membership of COMAC had been premised on the expectation of fair representation of members’ interests and the accommodation of differing but constructive views on policy and regulatory issues. However, Star Oil said recent developments had undermined this principle, prompting it to reassess its continued association with the chamber.

Issue

At the heart of the disagreement is COMAC’s public stance on the petroleum price floor, a contentious regulatory issue within the industry.

Star Oil disclosed that it had consistently called for the abolition of the price floor, a position that differs from the majority view among COMAC’s membership.

The company expressed dissatisfaction that its perspective had not been fairly acknowledged or adequately explained, particularly during recent media engagements by the chamber’s chief executive.

It said the lack of balanced communication fuelled negative public perceptions, creating the impression that its position is driven by anti-competitive or improper motives.

The company described such insinuations as unjust and damaging to its corporate reputation, especially given its long-standing contributions to the industry.

“In light of the above, Star Oil believes that continued membership of COMAC under the current circumstances exposes the company to reputational risk without providing a fair platform for its views to be represented,” the statement said.

“We have, therefore, decided to suspend our membership until the chamber demonstrates a clear commitment to balanced representation and fair communication of divergent positions among its members.”