StarOil has established SOL Energy as a wholly owned bulk petroleum subsidiary after concerns over supply shortages exposed weaknesses in relying entirely on external suppliers for its fuel requirements.
Group Chief Executive Officer Philip Tieku said SOL Energy has received authorisation from the National Petroleum Authority to operate as a Bulk Import, Distribution and Export Company following a lengthy regulatory approval process.
The company plans to use SOL Energy to meet about 50% of StarOil's petroleum product needs, giving the retail fuel company greater control over supply while continuing to procure the remaining volumes from established BIDECs.
Mr Tieku described the move as an important stage in StarOil's growth.
2025 Fuel Shortages Triggered Strategy Shift
StarOil's decision followed supply pressures experienced during the first quarter of 2025.
According to Mr Tieku, tight petroleum inventories during the period demonstrated the disadvantage an Oil Marketing Company could face when competing for limited supplies against firms with vertically integrated bulk and retail operations.
“For StarOil, now the largest OMC in Ghana, the implications were too significant to ignore,” he said.
Ghana's downstream petroleum market has changed considerably over the past two decades. Mr Tieku said the number of BIDECs has grown from two to about 35, while roughly 195 OMCs now operate in the country.
At the same time, many bulk distributors have established or become affiliated with retail fuel companies.
StarOil had previously chosen to concentrate on retail operations and obtain petroleum products through competitive tenders rather than establish its own bulk import company.
Mr Tieku said that model allowed the company to invest in its filling station network, technology and operational efficiency while benefiting from competition among petroleum suppliers.
SOL Energy to Cover 50% of Requirements
Despite obtaining a BIDEC licence, StarOil does not intend to shift all its purchases to SOL Energy.
Mr Tieku said the subsidiary's planned contribution would be limited to around half of StarOil's requirements.
The remaining 50% would continue to be sourced through competitive tendering from existing and prospective bulk suppliers.
“Our intention is therefore not to displace our partners but to create a more resilient supply structure that combines the security of our own import arrangements with the competitive advantages of continuing to source products from established industry participants.” - Mr Tieku
StarOil is also seeking reliable laycan allocations for SOL Energy to support its planned share of the company's petroleum requirements.
Mr Tieku said the company was not requesting preferential treatment but expected commercial cooperation consistent with the relationships built across the downstream sector.
For StarOil, the new model is intended to provide a buffer against future supply constraints without abandoning the procurement system that supported its expansion.
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