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Archive for Wednesday, June 30, 2010

BP giving financial help to its gas stations

June 30, 2010

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— 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.

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