APNewsBreak: BP giving financial help to stations

[Guest guest]

http://news.yahoo.com/s/ap/20100630/ap_on_bi_ge/us_oil_spill_bp_at_the_pump

APNewsBreak: BP giving financial help to stations

By HARRY R. WEBER, AP Business Writer Harry R. Weber, Ap Business Writer – Tue

Jun 29, 9:42 pm ET

HOUSTON – Gas could become cheaper at some BP pumps after the oil company agreed

to measures meant to help distributors and station owners offset a consumer

boycott against BP fuel that was sparked by the out-of-control spill in the Gulf

of Mexico.

BP PLC has offered to give distributors of its gasoline money back for every

gallon of gas they purchase at terminals. The cash back amounts to 2 cents per

gallon along the Gulf Coast and 1 cent per gallon in the East and Midwest,

according to several dealers contacted by The Associated Press. BP confirmed the

figures.

The distributors, who in many cases also own and operate stations, may pass

along some of the savings to motorists in the form of cheaper gas, although that

could depend on how badly a particular BP station is hurting.

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 that has

tarnished BP's image, so certain owners may choose to pocket the cash.

The reaction Tuesday among the independent businesses that supply and sell BP

gas was a mix of enthusiasm and concern.

Russ Scaramella, a BP distributor who owns and operates 65 locations in Arizona,

Georgia and Florida, said that until he runs the numbers he is unsure how much

the money would benefit him. He plans to distribute some of the funds to

stations he supplies but doesn't own.

" It's all very overwhelming, " Scaramella said.

The head of a trade group that represents distributors of BP gasoline in the

U.S. told the AP 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.

" They are going to get a check, " said Kleine of the BP Amoco Marketers

Association. " They're being given these dollars for use in their business. "

BP says the cash to distributors is for gallons purchased in June, July and

August.

Kleine estimates the total package BP is offering at roughly $50 million to $70

million.

The cash will be used by the distributors how they see fit, according to Kleine.

That could mean a break to consumers filling up at BP-branded pumps. But some

distributors may use the money to bolster their battered bottom lines.

BP cautioned that the cash allowance will not necessarily show up in the price

of gas at the street as BP does not set or control the prices.

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.

It wasn't clear if the offers were being extended to stations that carry the

ARCO banner. BP is the brand on marquees east of the Rockies, while ARCO is

predominant on the West Coast.

In a large number of cases, the distributor of BP gasoline also is the owner or

operator of BP-branded gas stations. But in some cases, there is only a supply

relationship between the distributor and the merchant at the retail location.

The latter category is where Bob Juckniess falls into.

Juckniess, who has seen sales drop 20 percent at some of his 10 BP-branded

stations in the Chicago area, said he was concerned that the cash is only being

given to distributors.

" Will the money flow down to the site level? " he asked.

At the same time, he said he believes BP understands the damage the oil spill

has done to the company's brand image, and thus to independent station owners.

" At this point, I think anything is good, and I think BP has an obligation to

assist us, " Juckniess said. " More importantly, we need to be able to pass that

on to the customer and give them a reason to continue shopping at BP and to use

that money to educate the customer that we are independent business people. "

Kleine said it is in distributors' interest to make sure retail locations

thrive, so he believes money will trickle down to everyone who needs it.

Kleine said that even with the offer from BP, distributors would still be free

to sue BP and seek compensation from the $20 billion compensation fund if they

choose.

BP spokesman Dean confirmed in an e-mail to the AP that the package

includes volume allowances and reductions in credit card fees that merchants pay

when customers use their credit cards to buy gasoline and items in station

stores.

" Teams of BP staff are also being deployed to help these independent

businesspeople activate consumer loyalty programs at their sites to help retain

consumers and to educate them on BP's response plan in the Gulf of Mexico, " Dean

said. " BP will continue to evaluate the programs and offers as the situation and

environment evolves. "

Dean added that BP is rolling out a marketing and advertising package that

includes " Locally Owned, Locally Operated " media and marketing support such as

point of purchase signage, radio, flyers, posters and postcards.

As to the compensation fund, BP spokeswoman Debra 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. were being notified directly by

the company. Calls began Monday and would likely continue through Wednesday,

Kleine said.

" 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. "

[Guest guest]

This is only happening because of how poorly educated Americans are. If they had any economic education at all they would know two things.

1. Most of the BP station are privately owned by franchise holders. That means an individual wanted to have a gas station and they took the risk to set one up. They could stay completely private but gas is cheaper if you work with one of the big companies. These guys just hitched their wagons to BP. They are not responsible for what happened in the Gulf so targeting them makes no sense.

2. If they do manage to put BP out of action, who is going to run the cleanup then? The government? That's worked out really well so far hasn't it? There is an off chance they let things get this bad to milk that end politically as far as they could, then bring in what works and try to seem like the saviors for even more political kudos. More likely they are just pandering incompetents.

Yes it does seem that BP shorted safety to make a little more money. That's a criminal matter against the bigwigs, not the owners of the stations. Mistakes were made on the rig, perhaps by the BP company men pushing for speed. We may never know for sure since some key witnesses died in the fire. Still, if it can be proven, that too is a criminal matter.

If these people want to protest anything, they should be at the EPA, Coast Guard and Union halls protesting the incompetence of government.

In a message dated 6/30/2010 3:12:51 A.M. Eastern Daylight Time, no_reply writes:

HOUSTON – Gas could become cheaper at some BP pumps after the oil company agreed to measures meant to help distributors and station owners offset a consumer boycott against BP fuel that was sparked by the out-of-control spill in the Gulf of Mexico.

[Guest guest]

Yep. Americans also forget that BP sells its gasoline to other stations as well,

and has additional products and services under the BP name and NOT under the BP

name so people may be buying BP products and services whether they know it or

not.

BP makes Biofuels, Motor oil and lubricants, Liquified Petroleum Gas (LPG),

Solar powered energy, and has subsiduaries most people are not aware of:

Air fuels

ARCO Aluminum

Aromatics & Acetyls

Asphalt and bitumen

BP Crudes

BP Franchising

BP Shipping

Industrial lubricants

Marine fuels and lubricants

Solar power

Look on pages 177 and 178 of their 2009 annual report to see a list of companies

they own or co-own, and in which countries. Interesting how people going to an

ARCO (Atlantic Richfield) station to get gas are buying BP fuels.

http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/set_branch/STA\

GING/common_assets/downloads/pdf/BP_Annual_Report_and_Accounts_2009.pdf

Administrator

This is only happening because of how poorly educated Americans are

[Guest guest]

Amoco/Standard Oil was in poor shape when BP took it over. Now there is rumor

that Exxon/Mobile will take over BP. That will be good for quality control, but

it may create a monopoly in the US.

Administrator

BP also has the worst safety record in the industry by far. At least 30 BP

workers have been killed and hundreds of others have been injured in the last

few years. They are responsible for 97% of the " willful " violations in the Gulf

and have paid over $300 million in fines. While Exxon, Sunoco and others had

less than 10 violations each, BP had 760.

Why they were allowed to keep operating in our waters is a mystery. Well, maybe

that they have lots of money to bribe politicians with and they sell our

military much of its fuel.