(Image: Greenpeace UK)
By Kirsten Korosec – Shrimpers, hotel owners and famous New Orleans chef Susan Spicer have all demanded BP pay for damages related to the Gulf oil spill disaster. Now a new group of business owners are gunning for BP: Owners of BP-branded gas stations, who have seen sales drop as much as 40 percent since the Gulf oil spill began April 20. In this case, their solution is as contrived as the boycott that led to their problems in the first place.
Their problem: A nationwide boycott of BP ramped up in May after the finger-like trails of oil that streamed from the BP’s offshore well covered pelicans and other wildlife and reached sensitive marshlands and beaches. Now 68 days since oil began spewing from the well, the boycott has hit its stride. Protests outside BP gas stations have popped up; the Facebook page Boycott BP has 723,000 followers and counting; and Lady Gaga, Rise Against, and Creed are among a growing list of rock bands to sign onto a “BP Free” initiative started by heavy metal group KORN.
Problem is, the boycott isn’t hurting BP. The oil company owns only about 200 of the more than 11,000 gas stations bearing the BP, Arco and Amoco names. The rest are owned by independent business folks who have contracts with BP to buy its gas and use the logo. That’s it. And like every other gas station in the U.S., their real money comes from convenience store items like coffee, doughnuts and frozen pizzas, not on the gas. Which means BP is still making its money, and the people who own these stations — and sign contracts up to 10 years — are locked into a money loser.
Their solution: Station owners and gas distributors have asked BP to cut the cost of the gas they buy and to help pay for advertising to attract customers.
UPDATE: BP has agreed to support gas station owners through direct payments, reductions in credit cards fees and help with more national advertising. The total package is estimated between $50 million and $70 million. (FULL STORY)
“It’s unlikely that advertising will bring back customers. A price cut would have to be significant to coax drivers to buy BP-branded gas.” There is “cost” and then there is real cost. Meaning the animal/human/ecosystem cost of all fossil fuel. The only persuasive point in this article for me is where does the gas come from for ALL non-BP gas stations? How are we gonna really change our ways? BP franchise owners should say no to dirty money from BP and re-brand. I would like to believe that is what I would do if I had had a half million to start a gas station franchise and decided to contract with BP years ago.