Jun 29, 2010 12:37 PM by Melissa Canone
HOUSTON (AP) - 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
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
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.
8 hours ago