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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.


      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 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 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."
      

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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.


BP giving financial help to stations

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