Of the more than 16,000 BP and Amoco service stations in the U.S., jobbers and dealers operate a significant majority of them. BP Amoco company and commission operated sites, where the company sets the retail price of gasoline, comprise less than 10 percent of the total and less than 1 percent of all U.S. retail service stations. In the vast majority of states, BP and Amoco do not have overlapping gasoline outlets. In the few states where both Amoco and BP are present, the distribution of both retail gasoline products are largely through jobber networks and not through company-operated stores or dealers. Additionally, aggressive retail gasoline outlets of every kind exist today.
Many independents influence the competitive environment for retail gasoline sales.
Prices are low at gas stations today for a number of reasons, including aggressive competition by efficient marketers. A more efficient BP Amoco will contribute to that environment, not threaten it. The merger will be good for competition and that translates into good news for consumers across the country. Customers are well aware of prices and very willing to switch their business in response to small changes in price. Moreover, independent operators and jobbers can readily switch affiliation to different brands in order to obtain more favorable terms with branding companies.