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Gas station owners react to the BP boycott

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Old Jul 7, 2010 | 04:12 PM
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Default Gas station owners react to the BP boycott

The knee-jerk reactionaries boycotting BP by not buying gas at the company's franchises have made such an impact that station owners are starting to ditch the brand in favor of competitors.

First thing's first: Assuming you're some kind of environmentalist hippie and don't own stocks, a solid first option is to stop purchasing directly-sold merchandise like lubricants sold under the Castrol brand.

Let's say it again: Boycotting actual BP stations has little or no effect on the bottom line of the BP mothership.

With few exceptions, most BP stations, like most gasoline stations in the country, are independently operated and sell fuel under a franchised brand. BP crude oil is mixed with oil from other suppliers at refineries and sold to wholesalers as various refined fuels, who in turn sell it to fuel retailers at the station. Some BP stations may have 50% BP oil, some may be zero, and some competitor stations may have BP-drilled gasoline at the pumps. Even the station owners don't really know.

In short, instead of hitting BP in the pocketbook, all this goofy boycott does is hit station owners in their pocketbooks. You know, some of those small business owners we hear so much about in the running of America's economy. Many operators are locked into five-to-seven-year franchise agreements with BP and have no good way to dissociate themselves with the Gulf of Mexico disaster and the ensuing PR nightmare it caused. Those stations are seeing as much as a much as 40% decline in sales.

Some retailers are either not in a contract or ending franchising agreements and abandoning BP's sinking drilling rig as fast as they can. Station owner Fred Asmar, who operates a station in Detroit, is ditching BP in favor of Sunoco. Even though replacing the signage at each of his outlets will cost around $50,000, he considers the expense worth it — the disorganized boycott is killing his business.

Funny thing is, the only thing that'll change is BP will lose the small franchise fee; Asmar will probably be purchasing fuel from the same wholesaler, and his pocketbook will be $50,000 lighter.

There is, of course, another thing not being considered in this whole mess. What if hell freezes over, the boycott works, and BP goes out of business? Who cleans up the mess then?
Attached Thumbnails Gas station owners react to the BP boycott-500x_bp_sign.jpg  
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Old Jul 7, 2010 | 04:17 PM
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Even if hell freezes over, BP has plenty of cash and other assets to cover costs associated with the current disaster.

The boycott is a another issue at the retail level...
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Old Jul 7, 2010 | 04:26 PM
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Link please?
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Old Jul 7, 2010 | 10:11 PM
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I buy my fuel from Gulf stations because they have the best livery.





I don't even know if there are any BP stations in my area. I'd still buy from them if the price was lower than competitors.
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Old Jul 7, 2010 | 11:40 PM
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Shell V-Power

I always think it's funny when people try to boycott things they can't actually hold out from buying in one way or another. Think about what you're doing, then do it if it still makes sense.
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Old Jul 7, 2010 | 11:41 PM
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i didnt know Castro was BP... i dont use Castro anywayz but i learned something new today
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Old Jul 8, 2010 | 12:40 AM
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they own arco and am/pm, castrol.

arco, am/pm, and BP aren't in canada.

i use chevron anyways.
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Old Jul 8, 2010 | 07:57 AM
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^ I used to Chevron in the Lex, but the BMW seems to perform better on Shell :shrug:
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Old Jul 8, 2010 | 08:34 AM
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I don't buy BP fuel anyway, but for two reasons that have nothing to do with the oil spill. First, Chevron and Shell both have better detergent additives for keeping the fuel system clean, and, Second, at least in my area, BP is a rip-off.......their prices are consistantly well-above even other name-brand fuels.
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Old Jul 8, 2010 | 09:20 AM
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Here in Cali, BP sells crap for fuel under the Arco label. Even though Arco is crap for gas, they collaborate with CARB to develop California's gas/diesel formulations. BP also has marketing agreements with BMW, VW and Ford.

I use Chevron, Shell, or Costco gas anyway.
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Old Jul 8, 2010 | 09:32 AM
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I buy Chervron 100%, don't see that many BP stations around here.
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Old Jul 8, 2010 | 11:57 PM
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Originally Posted by IS-SV
I buy Chervron 100%, don't see that many BP stations around here.
that's because they are now known as baby otter smiles

http://www.youtube.com/watch?v=7d2qEAotC7U
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Old Jul 9, 2010 | 07:57 AM
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I8ABMR, your original post is a cut and paste from jalopnik. If you wish to post this copyrighted material on CL, please post a credit and a link to the original work.

http://jalopnik.com/5581299/gas-stat...-bp-franchises
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Old Jul 9, 2010 | 10:08 AM
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Originally Posted by mmarshall
I don't buy BP fuel anyway, but for two reasons that have nothing to do with the oil spill. First, Chevron and Shell both have better detergent additives for keeping the fuel system clean, and, Second, at least in my area, BP is a rip-off.......their prices are consistantly well-above even other name-brand fuels.
The second part is oh so true here. I always fill up at a local gate station since their prices are the cheapest, current price is 2.829, and just down the road literally maybe less than a mile is a BP station and the price is about 2.899 or 2.909.
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Old Jul 9, 2010 | 11:05 AM
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Originally Posted by Lil4X
I8ABMR, your original post is a cut and paste from jalopnik. If you wish to post this copyrighted material on CL, please post a credit and a link to the original work.

http://jalopnik.com/5581299/gas-stat...-bp-franchises
I post these really quick sometimes. I am sorry. Just trying to freshen up car chat. Its been a bit stale recently.
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