Wednesday, July 7, 2010

BP (NYSE:BP) Gas Station Owners Fleeing the Company

Although the boycotting of BP (NYSE:BP) gas stations sounds right to some people, in the end it's just hurting many independent station owners, and really doing little to hurt the bottom line of the company.

As a matter of fact, it weakens their strategy even more when you take into account BP must remain a healthy company in order to pay for the cleanup and other liabilities they face, which will grow into billions.

Even so, some people misguidedly continue to boycott BP, and that is causing a number of independent owners not under long-term contracts to switch to brands of competitors.

The mainstream media is attempting to make it look like a huge exodus, but in fact when you take into considerations the costs associated with switching, and how much gasoline and items would have to be sold in order to pay that back, it's not for everyone, and many operators are under long-term contracts which lock them into BP for a period of years.

In reality, it's relatively few that are leaving BP, but if they have problems plugging the oil leak, and it continues to spew into the Gulf for much longer than anticipated, we could see a much larger number of independent owners go somewhere else.

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