Following the reduction in dealer margin and hike in grade premia charges on fuel, BP's dealers are contemplating to discontinue their contracts with the oil company, reported the ForecourtTrader.co.uk.
The website quoted an unnamed dealer as saying that it is ending its contract with BP as it is no more commercially viable.
Paul Sykes of Shaws Petroleum was quoted as saying: If we were coming to the end of our BP contract we would leave, but we’re tied in for another two and a half years.
Mr Sykes added that he has threatened BP with arbitration but the company has not responded to it.
The website quoted BP as saying: BP regularly reviews its commercial arrangements with all of its customers, including our independent dealer network, in the light of changing market conditions. There was no requirement on BP to debate the issue with its customers as it would be unethical to discuss commercial arrangements in an open forum.