HOUSTON -- BP Products North America has ceased branded gasoline and diesel fuel supply agreements at a number of terminals in Arkansas, Iowa, Kansas, Louisiana, Minnesota, Missouri, North Dakota, Nebraska, Oklahoma, South Dakota, Texas and Wyoming, according to a report by DTN in its OilSpot News.
The move was effect March 31, the company reported to its branded jobbers, said DTN. BP said it did not own, operate or directly supply the terminals, which are located at the "edges" of its "core fuel supply areas."
The move is inline with the company's October 2007 announcement that [image-nocss] it would refocus U.S. fuel operations, exiting markets outside of its core fuel supply areas to concentrate on core areas where it has strong market position and proprietary fuel supply, said the report.
BP plans to continue to offer and grow its fuel supply operations in the West Coast, Midwest, Southeast and Mid-Atlantic regions, including New York, and New Jersey, where the company has a refinery and terminal network, DTN said.
BP informed its jobbers last July of plans to focus its U.S. fuel supply operations, according to a copy of the notification sent to jobbers obtained by CSP Daily News at the time. To focus its fuel supply operations, BP said it planned by April 2008 to end gasoline and diesel exchange or rack purchase agreements at some product terminals where it does not have an advantaged position in the Plains and Gulf Coast states. These terminals supply less than 2% of BP diesel and gasoline sales in the United States and are where the company experiences about 35% of its gasoline and diesel supply runouts. These terminals are not owned, operated or supplied directly by BP and are located at the edges of the company 's core fuel supply areas.
BP said then that it was working with its affected jobbers to develop transition plans. Where possible, BP jobbers would be supplied by a terminal operated by BP. The jobber-supplied retail sites that would no longer receive BP-branded product will be debranded and receive fuel supply from other companies.
Click hereto read CSP Daily News' full report on BP Products North America's refocusing efforts.
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