BP floating financial lifeline to station owners

The embattled company will give aid packages to offset boycotts


Harry R. Weber
June 29, 2010 8:10PM (UTC)

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.

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.

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The cash component will be based on distributors' volume and will be more for outlets along the Gulf Coast than for those elsewhere in the country, said John Kleine of the BP Amoco Marketers Association.

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.

Distributors would still be free to sue BP and seek compensation from the $20 billion compensation fund if they choose, Kleine said.

BP did not immediately comment.


Harry R. Weber

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Gulf Oil Spill

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