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BP is to terminate its agreements with Arval and from 31 October, BP
will no longer accept Arval fuel cards at its company operated sites.
In addition, retailers have received letters from the oil company’s fuels operations manager Peter Molloy stating Arval costs have “increased significantly” in recent years and are “simply unsustainable”. The letters add that, had BP continued its agreement with Arval, it would have had to pass the costs on.
While BP will no longer accept Arval at its company operated sites from 31 October, it has told retailers they are free to continue - but they will need to deal directly with Arval. According to the letters, BP’s online authorisation service will no longer apply to any cards issued by Arval UK Ltd. The letters also outlined that, as a consequence of the move, dealers “will not be able to obtain on-line authorisation or carry out any pollng of Arval Cards using the Donne terminals.”
BP has offered retailers a reduction on their fuel purchase price if they enter into an agreement to only accept BP branded fuel cards and selected partner cards at their site. The cards in the exclusivity agreement are BP PLUS, BP PLUS Bunker, BP Agency, Shell Agency, Totalcard Commerical, Totalcard Fleet, Agip Routex, OMV Routex, UTA and DKV.
Retailers, who were told the discount would be applied off invoice, have expressed anger and concern over the move. Paul Sykes, MD of Huddersfield-based Shaws Petroleum Ltd, said: “While I have no sympathy for Arval, it’s extremely worrying that we may lose 10% of our business. If we keep accepting Arval cards, we’ll need a separate system for swiping the cards etc. BP is saying it is our choice, but there are so many hurdles in place. I think Arval has left BP with very little choice - I just hope Arval can come to the table and discuss this.”
PetrolWorld 240808
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