National boycott from oil spill hurting local BP gas stations despite private ownership

DEARBORN — BP branded dealers across the nation, including many in the metro Detroit Arab American community,  continue to experience profit loss as a result of the disastrous oil spill in the Gulf of Mexico that began in April.  On July 7, dealers gathered at the Lebanese American Heritage Club in Dearborn to adopt resolutions to save their businesses. 

Allie Berry, from Amada Oil and Gas speaking to gathered dealers at the Lebanese American Heritage Club in Dearborn

The evening’s focus was promoting the theme “Locally Owned and Operated” which was created by crisis management experts with the help of BP. 

“We are trying to come up with programs to get the consumer to know this is independently owned and operated,” president of Armada Oil Company Ali Jawad said.

Dealers picked up local support kits from the event that included point of purchase material, radio scripts and on-site support posters and fliers that position dealers as local business owners.

“The news media is talking about BP, so many consumers want to stop coming to our gas stations. This is affecting us financially.  I wish people could understand the gas stations are not owned by BP, they are owned by regular community people, their neighbors, family and friends. The community should know we have nothing to do with what happened. If they stop coming to our gas stations we’re going to be out of business, and they’re going to see a closed gas station next door,” BP dealer Hassan Jawad said.

Jawad said he’s lost 30 percent of his business since the disaster struck including loyal customers of more than 20 years. He says other consumers have taken their frustration out on associates verbally.

“I know dealers that have lost up to 45 percent of their business. Costco, Meijer and Sam’s Club all buy fuel from BP, but they don’t have the logo and image. Why aren’t they boycotting against them?” Jawad said.

Some BP dealers are considering switching over to other brands, but can’t until their contracts end.

BP dealers have been advised to acknowledge the crisis in the Gulf, show support for BP’s efforts and express gratitude to consumers. 

On July 5 BP sent an update on their most recent subsea source control and containment efforts to dealers. Containment systems are collecting oil and gas from the Deepwater Horizon’s failed blow out-preventer and transporting them to vessels on the surface.

As of July 3. an estimated 25,198 barrels of oil were collected or flared by the two systems and 57.0 million cubic feet of gas were flared according to a BP news release.

BP has received 95,000 claims and made more than 47,000 payments that have cost $147 million.