The announcement was made to affected jobbers on Dec. 11, 2009, and goes into effect June 30, 2010, Scott Dean told CSP Daily News. BP will stop supplying branded fuel to customers out of six third-party terminals in central Pennsylvaniaincluding Altoona, Harrisburg, Mechanicsburg, Northumberland, Sinking Spring and Wilkes-Barreand withdraw from 26 counties in central Pennsylvania.
"As a result of BP's decision, [image-nocss] BP is terminating eight jobbers, and BP is requiring nine other jobbers to debrand at least one BP site or redirect at least one BP site to a new designated terminal for fuel supply," Dean said via e-mail.
As of Dec. 11, 2009, there were about 375 retail fuel sites in Pennsylvania that sell BP-branded motor fuel. As of June 30, Dean said the modified or ended fuel supply agreements will mean BP will have around 275 branded retail fuel sites in Pennsylvania.
In recognition of transition issues, Dean said BP will:
Continue to pay outstanding jobber outlet incentive funds due on sites that must be debranded until June 30, 2010, or until sites are debranded, whichever is sooner. Lift any petroleum use deed restrictions imposed by BP on any site that must be debranded. Pay jobbers that do not choose to brand a site (that must be debranded) with a third party's brand a $3,500 per-site damage allowance (after debranding requirements are met and confirmed). Waive unamortized JOIP (Jobber Outlet Incentive Program), Commlinx, reimage and MAP (Marketing Assistance Program) funds for sites that must be debranded after the jobber pays its accounts-receivable balance in full. Dean did not comment on why the decision to exit these areas was made, although BP sold five fuel supply contracts and its remaining company-owned stations in the area of Petersburg in central Pennsylvania in August 2008 to EZ Energy Ltd.
Houston-based BP markets more than 15 billion gallons of gasoline every year to U.S. consumers through more than 11,000 BP- and ARCO-branded retail outlets and supplies more than four billion gallons of fuel annually to fleets, industrial users, auto and truck manufacturers, railroads and utilities.
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