Houston, TX – Oil giant BP PLC is floating a financial lifeline to the owners, operators and suppliers of the gas stations around America that bear its name and have been struggling because of boycotts prompted by the Gulf spill.
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The head of a trade group that represents distributors of BP gasoline in the U.S. told The Associated Press on Tuesday that the company is informing outlets that they will be getting cash in their pockets, reductions in credit card fees and help with more national advertising.
The cash component will be based on distributors’ volume and will be higher for outlets along the Gulf Coast than for those elsewhere in the country, said John Kleine of the BP Amoco Marketers Association.
“They are going to get a check,” Kleine said. “They’re being given these dollars for use in their business.”
He estimates the total package BP is offering at roughly $50 million to $70 million.
Some BP-branded gas stations have reported sales declines of 10 percent to 40 percent from Florida to Illinois since the April 20 rig explosion in the Gulf of Mexico.
BP owns just a fraction of the more than 11,000 stations across the U.S. that sell its fuel under the BP, Amoco and ARCO banners. Most are owned by local businessmen whose primary connection to the oil company is the logo and a contract to buy gasoline.
Distributors would still be free to sue BP and seek compensation from the $20 billion compensation fund if they choose, Kleine said.
BP spokesman Scott Dean did not dispute Kleine’s comments. He said the company was preparing a statement.
As to the compensation fund, BP spokeswoman Debra Reed said previously that the overseer of the fund has stated that anyone is welcome to file a claim.
Whether or not it is valid is up to the administrator.
Kleine said the 475 BP distributors in the U.S., many of whom own or operate BP-branded gas stations, were being notified directly by the company. Calls began Monday and would likely continue through Wednesday, Kleine said.
The cash will be used by the distributors how they see fit, according to Kleine, who said the money could result in discounts to consumers at BP-branded pumps. Some distributors may use the money to bolster their bottom lines, which have been affected because of the boycotts.
“There’s a lot of variance in terms of the business effect of this incident,” Kleine said. “To try to manage this nationally, it’s just too big of an elephant. They recognized that the people that have the best knowledge and can apply the resources best are the local distributors.”
i only fill at bp stations now!
lower prices
You only do a boycott when somebody does something bad intentionally. We should help them survive. Tens of thousands of ordinary citizens here in the US and abroad have invested in BP stock and put their retirement hope on it.
We maybe should rather boycott I think Russian owned Gas brand and there is plenty of them ….
Another attempted hijack of a crisis by the left wing commie nutjobs.
I boycott BP for propping up the Irani regime…
I was wondering why Boro Park has emptied out the last few days, everyone is boycotting BP
I am not pro-boycott but 70 million is an insult. That is a pocket change for them. All their financial #s are in billions.
The BP station owners need to switch franchises. Marathon, Diamond-Shamrock, Valero et al would jump at the chance to expand their franchise networks.
Today is something like day SEVENTY THREE of this thing and suddenly the Obamanation decides to accept help from other countries? Where was he when this was offered over 2 months ago? Why, playing golf with the gulf and protecting his union thug buddies of course.
I cant wait for the manure to hit the fan with this horrible president of ours. Actually the manure hit the fan already, the problem is not enough people have realized it.