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BP & g.a.s. announce commercial relationship

BP and g.a.s. announce innovative commercial relationship

BP today announced it has entered into a commercial agreement with Gasoline Alley Services (g.a.s.). The agreement involves BP supplying all of g.a.s.' existing service stations and provides an option to transfer a number of BP's independent service stations to the g.a.s. brand.

BP Managing Director, Peter Griffiths, said he believed this would mean a stronger competitive petrol retail market in New Zealand, and provide the best chance for smaller independent service stations to survive in a fast changing, and very competitive, retail environment.

The commercial agreement has two key components:

* The first involves an option to transfer up to 140 independently owned BP branded retail stations to g.a.s. (the final number will be dependent on how many of the independent owners choose to take up the g.a.s. offer).

* The second component is a supply agreement in which BP will supply all of g.a.s.' fuel and lubricants in the future. This includes g.a.s.' existing 35 stations and all future stations, including the independent operators who move from BP to g.a.s.

The successful conclusion of the agreement will allow BP to focus on its core retail offers (Connect, Express and 2GO).

g.a.s. Director, Phil Murray, said the deal was a win-win for everyone involved - the g.a.s. team, BP and the independent operators who now have a strong and exciting alternative option for developing their businesses.

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"g.a.s. is committed to developing a national network and we are committed to the growth of smaller independent stations. We believe it is a very positive niche market, and one that we have built our reputation on. We already have 35 stations throughout New Zealand and now we have an opportunity to achieve our goal of 200 stations a lot faster than previously thought.

"We also benefit from a commercial partner who recognises our expertise and vigour, and cares enough about its smaller independent operators to actively look for opportunities that secure their future," he said.

Mr Griffiths said this was an opportunity for BP to grow our overall volumes while providing a strong alternative opportunity for our smaller independent operators to grow and survive in a very competitive market.

"With our retail strategy and our focus on Connect, Express and 2GO, we wanted to be able to offer our independents a viable long term option with a commitment to their future. We strongly believe that g.a.s. is a positive alternative for them. It is a fast growing wholesaler that is committed to a national independent network.

"By providing a managed approach that allows them to transfer to a brand that will care for them, we are honouring the commitment these operators have shown BP in the past.

"It is important to note that the independent operators are being offered a choice. The key issue is that we want to give them an opportunity to consider their long-term position, and to allow them to move to the g.a.s. brand now if they believe that is a better fit for them.

"Our continued involvement in the supply of wholesale fuel and lubricants to them through g.a.s. can also give them the confidence of knowing they have a guaranteed quality of supply," he said.

Both BP and g.a.s. believe the effect on customers will be minimal. BP Fuelcard will now be offered at all g.a.s. stations. AA Rewards and BP Vouchers will not be able to be offered by stations that move to g.a.s.

Independent dealers from both networks were being briefed on the agreement today.

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