The Chamber of Oil Marketing Companies (COMAC) has issued one of its strongest warnings yet about structural weaknesses in Ghana’s downstream petroleum sector, calling for a decisive overhaul of the current licensing regime.
At the centre of the concern is the continued existence of dozens of Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs) that hold valid licences but are not actively operating. According to COMAC, about 53 licensed marketers are effectively dormant, lifting little or no fuel for extended periods while retaining full regulatory status.
In its article sighted by Accra Street Journal titled “Price Floor in Perspective”, COMAC argues that this situation no longer reflects the realities of a deregulated fuel market and is quietly eroding competition, discipline, and long-term stability in the sector.
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A Licensing Framework That Has Fallen Behind the Market
COMAC’s position is that Ghana’s downstream fuel market has evolved, but its licensing rules have not kept pace.
A System Designed for a Different Era
According to the Chamber, the existing licensing framework was built for a market with lower capital requirements, simpler risk profiles, and fewer regulatory obligations. Today’s fuel market, however, demands significant financing, robust safety compliance, access to storage, and the ability to manage price volatility.
“The current licensing regime is misaligned with the evolved structure and risk profile of Ghana’s downstream petroleum sector,” COMAC said, adding that entry thresholds and ongoing compliance requirements are no longer sufficient to support a credible deregulated framework.
In effect, the rules still allow companies to remain licensed without demonstrating sustained operational capacity.
Licensed, But Not Actually Operating
The contradiction at the heart of COMAC’s argument is straightforward but troubling.
Paper Competition Versus Real Market Activity
On paper, Ghana’s downstream petroleum sector appears highly competitive, with dozens of licensed marketers. In practice, COMAC says only a smaller group of serious operators consistently lifts products, supplies the market, and shoulders the full burden of regulation.
Inactive firms face none of these pressures. They do not finance product imports, maintain storage facilities, or incur safety and compliance costs. Yet they retain the same licences as active marketers.
“At least 53 non-operational OMCs and LPGMCs retain active licences despite failing to lift product consistently. This distorts competition and weakens regulatory discipline,” COMAC noted.
The result is a licensing register that exaggerates competition while masking the true structure of the market.
Why Dormant Licences Matter Beyond Regulation
COMAC stresses that the issue goes beyond administrative housekeeping. The presence of non-operational licence holders affects how the entire downstream system functions.
Distorted Competition and Higher Risk
Active marketers operate in a market that appears crowded but is not evenly competitive. Serious players absorb compliance costs while competing against entities that incur none, creating an uneven playing field.
Over time, this distortion undermines pricing discipline, complicates supply planning, and weakens risk management across the value chain. It also reduces investor confidence in the credibility of deregulation.
When regulation rewards inactivity and speculation rather than investment and service delivery, the costs eventually filter through to consumers and the broader economy.
COMAC’s Prescription: Clean the Register, Raise the Bar
To restore discipline and credibility, COMAC is pushing for firm regulatory action.
Revocation for Inactivity
The Chamber is calling for the immediate revocation of licences held by marketers that fail to lift fuel or gas products consistently for a six-month period. This, COMAC argues, would ensure that only genuinely active players remain in the market.
Stricter Entry and Renewal Requirements
Beyond revocation, COMAC wants tougher standards for new and existing licence holders. These include stronger proof of financial capacity, operational readiness, and a verifiable compliance history before licences are granted or renewed.
According to COMAC, this approach would align licensing with the realities of a fully deregulated fuel market and ensure that only capable, committed firms are allowed to operate.
The Political Sensitivity and the Economic Trade-Off
COMAC acknowledges that revoking licences is not a politically or commercially easy step. Removing firms from the register can attract resistance, especially in a sector closely linked to prices, employment, and public sentiment.
Stability Versus Avoidance
However, the Chamber insists that avoiding the issue poses greater long-term risks. A deregulated market built on dormant licences and speculative participation, COMAC argues, cannot remain stable or credible.
Without decisive action, the sector risks losing efficiency, fairness, and investor confidence at a time when stability is critical for energy security and economic planning.
The Bottom Line From ASJ
COMAC’s message is blunt: Ghana’s downstream petroleum sector cannot function on paper competition and inactive licence holders.
A credible deregulated market requires real operators, real investment, and real accountability. Allowing dozens of non-operational marketers to retain licences weakens discipline and undermines the very framework meant to protect consumers and ensure stability.
As pressure mounts for reform, regulators face a clear choice: preserve a crowded register that masks fragility, or enforce standards that reflect the realities of today’s fuel market.
FAQs
Why is COMAC calling for licence revocation?
Because dozens of licensed fuel marketers are inactive, distorting competition and weakening regulatory discipline.
How many non-operational companies are affected?
COMAC estimates about 53 OMCs and LPGMCs are licensed but not consistently lifting products.
Why does this matter to consumers?
Distorted competition can undermine pricing discipline, supply stability, and long-term market efficiency.
What reforms is COMAC proposing?
Revoking licences for marketers inactive for six months and introducing stricter entry and renewal requirements.
Is the proposal politically sensitive?
Yes, but COMAC argues that inaction poses greater risks to market credibility and stability.
Source: Accra Street Journal
Last Updated on February 1, 2026 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
