The Chamber of Oil Marketing Companies (COMAC) is demanding a major shakeup in the licensing regime in Ghana’s downstream petroleum sector.
COMAC is calling for the immediate revocation of licences held by about 53 non-operational Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs).
In an article titled “Price Floor in Perspective”, COMAC warns that the current licensing regime no longer reflects the realities of today’s fuel market and is quietly undermining competition, discipline, and long-term stability in the industry.
COMAC said, “The current licensing regime is misaligned with the evolved structure and risk profile of Ghana’s downstream petroleum sector. Entry thresholds, financial capacity requirements, and ongoing compliance criteria are insufficient to support a sustainable and credible deregulated framework.”
Licensed, but Not Doing Business
At the heart of COMAC’s concern is a troubling contradiction. Dozens of companies still hold valid licences from the National Petroleum Authority (NPA), yet they are not actively lifting fuel or gas products. Some have reportedly gone months without meaningful operations.
The impact of this situation on the industry, according to COMAC, is dire. COMAC reveals that this creates a false sense of competition. On paper, the market looks crowded. In reality, only a smaller group of serious operators bears the full cost of compliance, storage, safety standards, and financing.
The inactive firms face none of these pressures, yet retain the same regulatory status.
“At least 53 non-operational OMCs and LPGMCs retain active licences despite failing to lift product consistently. This distorts competition and weakens regulatory discipline,” the article noted.
Why It Matters to Consumers and the Industry
The presence of non-operational marketers is not just a regulatory issue; it affects the entire value chain. Serious players face distorted competition, while pricing, supply planning, and risk management become harder to control.
According to COMAC, over time, this can lead to market instability, unfair pricing practices, and reduced confidence in deregulation.
Ultimately, consumers and the economy pay the price when the system rewards inactivity and speculation instead of real investment and service delivery.
COMAC’s Fix: Clean the Register, Raise the Bar
To restore credibility, COMAC is pushing for decisive action. Its recommendations include revoking licences of marketers that fail to lift products consistently for six months and tightening entry requirements for new applicants.
This would mean stricter checks on financial capacity, operational readiness, and compliance history before a licence is granted or renewed. This call is to ensure that only capable, committed companies are allowed to operate in a fully deregulated market.
COMAC recommends the “ revoking licences for non-operational marketers that fail to lift product consistently for six months, and introducing stricter entry requirements, including proof of financial capacity and compliance history.”
The Bottomline
It is expected that acting against inactive licence holders could be politically and commercially sensitive, but industry players argue it is necessary.
But COMAC insists that a deregulated fuel market cannot function on paper licences and dormant players. Without firm action, the system risks losing credibility, efficiency, and fairness just when the sector needs stability the most.
