Star Oil Is Leaving As A Minority Voice, Not Because It Was Sidelined – COMAC Boss

The Chairman of the Chamber of Oil Marketing Companies (COMAC) says Star Oil’s decision to suspend its membership was not because it was pushed aside, but because it held a minority position on a key industry policy.

Gabriel Kumi, speaking on Joy News’ PM Express, Business Edition, on Thursday, said the Chamber followed its established decision-making process on the petroleum price floor.

“Star Oil is a very key member of the Chamber,” he said.

His comments follow Star Oil’s announcement of an indefinite suspension from COMAC, citing dissatisfaction with the Association’s handling of the fuel price floor debate.

Mr Kumi said Star Oil itself acknowledged the principle guiding COMAC’s decisions.

“I’m happy in the letter that Star Oil wrote to us; it did admit that it respects the view of the majority,” he said.

He stressed that minority views are recognised but cannot override the collective agreement.

“We also respect the view of the minority, but at the end of the day, the majority decision carries the day,” he said.

Mr Kumi explained that the fuel price floor policy was initiated by the Chamber and not imposed from outside.

“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 admitted the policy has faced difficulties. “Along the line, there have been challenges with the policy,” he said.

He said those challenges led to internal objections. “And I think that is what got our member to express those things,” he said.

According to him, those objections later resulted in Star Oil’s decision to step aside.

“Unfortunately, those expressions find their way in them, saying that they want to be suspended from the Chamber,” he said.

Despite the development, Mr Kumi said COMAC respects Star Oil’s choice.

“We respect that decision of Star Oil,” he said. But he said the Chamber’s position remains firm.

“At the end of the day, the majority decision is that, as it stands, the floor pricing policy is good for the industry,” he said.

He said the policy serves a protective role. “It protects the industry and is the way to go,” he said.

Mr Kumi also rejected claims that larger companies dominate decisions at COMAC.

“At the chamber level, at the board level, everybody has one vote,” he said.

He stressed that size does not matter. “No matter how big you are, you still have one vote,” he said.

He said policies only move forward with broad backing. “If it wasn’t the majority decision, we couldn’t push it,” he said.

He added that unpopular proposals are dropped. “There are a lot of decisions that we have discussed, but if we find that it’s not popular, we shelve it,” he said.

He said the fuel price floor still commands support. “This one was a popular majority decision, and it’s still the popular decision amongst the Chamber members,” he said.

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