Posted on July - 07 - 2010

Some Memphis-area BP stations being hurt by oil spill backlash

Photo by Brandon Dill // Buy this photo

Although owners say boycotting local BP gas stations hurts small businesses, not the big oil company, some consumers are avoiding the brand. Midtown BP employee Howard Ballard fills a customer’s car with gas at the full-service station on Madison Friday.

Many Memphians are using a consumer boycott against BP to send a message, often with dire consequences for the independent owners of local BP stations.

While several local BP gas station managers reported no change in their business profits, others complained of unprecedented sales declines.

“We’ve been affected a lot,” said Fadel Dumah, who owns and operates a BP gas station and convenience store on Jackson.

Dumah estimated that his profits have declined 20 percent since the Gulf oil spill.

“When my profit goes down, I’m going to have a hard time paying my employees and utility bills,” Dumah said.

Because Dumah is tied into a 20-year contract with BP, he said the boycott will not affect the brand of gas he distributes. He said many of his customers understand that his independently owned and family-operated business is not responsible for the oil spill. Others, he said, are quick to judge him by the BP logo.

“If they see you wear the BP uniform, they look at you like you’re a bad man,” said Dumah.

Greg Getman, manager and owner of an auto-repair shop and BP gas station on Madison, estimated his gasoline sales have dropped 10 percent since the oil spill.

Getman said he’s received several phone calls from people asking to verify that he sells BP gas. One woman even called threatening to picket — until she found out that Getman’s locally owned and family-operated business also does auto repairs. Like Dumah, Getman is locked into a contract with BP and said boycotting local BP gas stations hurts small businesses, not the big oil company.

“Holding a locally owned business accountable for something that happened due to BP is not the remedy or the solution,” Getman said. “Striking against local small business owners is not the answer.”

David Jones, who sells BP gas at his auto-repair shop on Poplar, said his business hasn’t been affected too badly. Most people seem to know that the oil spill is not his fault, he said.

“We understand that people are frustrated, but we hope that they will not unfairly target local independent BP business people,” said Daren Beaudo, a national BP spokesman.

Of the 9,700 BP stations across the country, Beaudo said the vast majority are locally owned.

To help these local businesses, BP has developed a $60 million response package, said national BP spokesman Scott Dean.

Dean said local distributors will receive 1 to 2 cents back per gallon of gas purchased in June, July and August. But he said the savings may not necessarily translate into lower gas prices, which are set by individual managers. BP is also offering credit card fee reductions and will increase advertising emphasizing that these businesses are locally owned and operated.

– Emily Greenberg: 529-2542

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