BP closes 12 loss-making service stations

OIL giant BP will shut down 12 service stations across Namibia, citing low demand from consumers.Some of the service stations to be closed are: the HJ Karas Toyota at Keetmanshoop, XL Garage of Karasburg, Nova Tyre at Mariental, CR Du Toit, Klosterman at Sossusvlei, Gey Motors at Otjiwarongo, BP Motors at Outjo, Universal Motors at Grootfontein, Tecamo Service Station at Engela and Shitema Service Station at Rundu.

Three others will be transferred to new operators as part of the BP Africa Fit for Growth Strategy. The 15 sites were offered to other operators but BP said there was little interest, proving the non-viability of the sites.”In Namibia, due to low population densities particularly away from the main centres, we face high distribution costs and low demand volumes because we are not prepared to offer our customers differing quality of service.”Since customers in those areas still rightly demand a service that meets the basic needs of economic operations and focused services at the lowest cost, to provide these needs, a decentralised mode of service delivery is required,” said a statement released by BP Namibia yesterday.The company also said it viewed the process as an opportunity for local providers to expand their services and for new entrants to get into the market.BP Namibia’s Corporate Affairs Manager, Esther Hoveka, said developments in the region over the past years had created a more dynamic business environment and BP had realised that the company had to remain competitive in this evolving situation.Hoveka was unable to say how much the company would lose by closing the service stations, or whether it would be a loss at all, but said by investing in the Fit for Growth Strategy, the company should see positive gains.The 15 sites were offered to other operators but BP said there was little interest, proving the non-viability of the sites.”In Namibia, due to low population densities particularly away from the main centres, we face high distribution costs and low demand volumes because we are not prepared to offer our customers differing quality of service.”Since customers in those areas still rightly demand a service that meets the basic needs of economic operations and focused services at the lowest cost, to provide these needs, a decentralised mode of service delivery is required,” said a statement released by BP Namibia yesterday.The company also said it viewed the process as an opportunity for local providers to expand their services and for new entrants to get into the market.BP Namibia’s Corporate Affairs Manager, Esther Hoveka, said developments in the region over the past years had created a more dynamic business environment and BP had realised that the company had to remain competitive in this evolving situation.Hoveka was unable to say how much the company would lose by closing the service stations, or whether it would be a loss at all, but said by investing in the Fit for Growth Strategy, the company should see positive gains.