BP Buys Woolworth's Petrol Chain for $1.8 Billion

shapers on 28/12/2016 - 11:04
Last edited 28/12/2016 - 11:05

"Woolworths and BP will develop a joint fuel convenience store called Metro at BP after the retailer struck a deal to sell its petrol stations to the oil and gas multinational for $1.79 billion.

BP has agreed to buy Woolworths' 527 fuel convenience store outlets and 16 development sites.

The deal with BP ends the ambitions of fuel retailer Caltex, which had made an offer to buy the Woolworths service stations.

Under the deal Woolworths' four cents per litre fuel discount offer and customer rewards programs will be maintained and expanded to some BP stations."

Read more here

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Comments

  • moo on 28/12/2016 - 11:08
    +4

    Bring on Woolworth Ultimate!!

  • Nugs on 28/12/2016 - 11:12
    +1

    No mention if wish cards will still be useable. Shame it will no longer be Caltex.

    • justcallmeboss on 28/12/2016 - 19:51

      My main concern tbh… that and the fact that BP is almost always more expensive than Caltex in my area!

  • StewBalls on 28/12/2016 - 11:16

    What happens to fuel discounts? Velocity points???

    • shapers on 28/12/2016 - 11:18
      +1

      "Under the deal Woolworths' four cents per litre fuel discount offer and customer rewards programs will be maintained and expanded to some BP stations."

      • StewBalls on 28/12/2016 - 11:21
        +1

        Nice, thanks.

      • Neilzy on 28/12/2016 - 11:37

        Sweet! so can use the 4c discount, pay via discounted Wish cards and claim Velocity points? Hope it comes to my local BP

      • jimbobaus on 28/12/2016 - 19:07
        +2

        BP metro sites will offer the 4C Discount and Woolworths Rewards but no Velocity Points
        Non Metro sites will not do 4c discount but will offer Velocity Points
        As per interview on Sky News Business this evening.

      • 11112007 on 28/12/2016 - 20:38

        I have a novated lease and BP fuel is 3c/L off. Hopefully I will be able to stack this with a 4c/L supermarket offer and get 7c/L.

  • ProjectZero on 28/12/2016 - 11:33
    +1

    I thought there were already fuel stations called Metro serving Mobil fuel…

  • [Deactivated] on 28/12/2016 - 11:34
    +1

    BP is always very expensive in-store however their properties are much more prevalent on major arterial routes than caltex.

    Does this hopefully mean the BP stores will become more realistic pricing like Shell

  • gooddealmate on 28/12/2016 - 11:46
    +3

    Not good news. Always found BP's fuel to be far more expensive than its competitors, at least on the Gold Coast that is. Less competition usually means higher prices so I'll goes we'll just have to wait and see what happens. Probably end up going back to United fuel.

  • pebee47 on 28/12/2016 - 12:34
    +1

    I've noticed Coles sites generally have steadily slipped down the list on Fuelwatch here in WA, settling in with BP.
    Main daily price "war" seems to be between Woolies, United and some of the other minors (Puma, Vibe etc).
    Caltex was renowned for having the best distribution system in Oz, but with Woolies going to BP that will hurt the Caltex fuel supply chain, not to mention their bottom line.
    I would also suggest it heralds the end of the fuel wars of the past

  • ESEMCE on 28/12/2016 - 14:03

    My local Woolies Servo closed up before Christmas, underwent considerable renovation of the pump area, which was possibly removing the LPG infrastructure (as there is no LPG tank anymore) and has now re-opened as a Liberty.
    Sadly both local BP sites are now owned by Peregrine Corporation, so unlikely to be included in the Woolies deal.

    • ESEMCE on 30/12/2016 - 10:53

      Just found out that Peregrine Corporation (On The Run) have bought ALL South Australian BP outlets!
      I wonder if this means the end of Woolies 4c discount in SA?

  • Mad Max on 28/12/2016 - 14:28

    A lot of service stations are removing LPG.
    A pity because it is a cheap fuel and also much cleaner than petrol or diesel.
    BP does not have a good name for LPG. Best LPG used to be from Caltex. Less troubles with tar clogging up the converter. Confirmed by some LPG installers.

    • tunzafun001 on 28/12/2016 - 15:43

      10 year tank testing costs have killed LPG I guess. A pity as my factory LPG commodore is coming up on 650 000km and has never missed a beat, and it is only 56c per litre at my local (only one left, others have removed it). I guess Aussie gas reserves are all for OS.

      • ESEMCE on 28/12/2016 - 16:03

        Yeah mine is coming up for checking.. and I'm questioning the value of doing so.

        But I actually think the fuel cost and the death of the Australian 6 cylinder that has killed the market.
        There's not much price advantage anymore at 73c in Adelaide (especially after factoring 10 year pressure certification) and not much in the way of vehicle sales either.

        • tunzafun001 on 28/12/2016 - 18:12

          To be honest my check is 5 years over due. No enforcement of the check. You can still register the car etc. Not sure if insurance is effected, but they have never asked about tank check dates.

        • Mad Max on 28/12/2016 - 18:23
          +2

          @tunzafun001:
          As usual the only problem is if something happens…
          This mob are near Adelaide and on the website they quote tank testing from $66!!!

          http://www.advancedcylinder.com.au/stock-and-contact

        • jimbobaus on 28/12/2016 - 19:06
          +1

          @tunzafun001:
          In VIC if the LPG cylinder does not have a up to date tank check
          1) the Car will NOT pass a RWC and therefore can not be transferred if sold
          2) Is a valid reason to deny insurance pay out in event of accident etc (as the car was not Roadworthy)

        • tunzafun001 on 28/12/2016 - 22:23

          @maxi: Cheers, will get on it.

      • Mad Max on 28/12/2016 - 18:16

        10 years tank testing would be about $200. That is only $20/year.
        650000km on lpg on a Commodore would have saved you tens of thousands in fuel.
        Yes the death of the Australian 6 cylinder may have something to do with it, but in Europe a lot of manufacturers are now offering factory fitted dual fuel on small 4 cylinders cars. Australia is just now going towards diesel. That happened in Europe 20 years ago. Australia always follows Europe after 15-20 years.

        • ESEMCE on 30/12/2016 - 10:54

          $20/year if the car lasts another 10 years!

        • Mad Max on 30/12/2016 - 11:48

          @scubacoles:
          That is true. However LPG saves me about 6c/km (considering average cost of petrol and lpg and about 30% increase in fuel usage with lpg compared with petrol. So in 3300km you would recover the $200 testing cost.

    • shapers on 28/12/2016 - 17:58
      +1

      Yeah its a shame, it was a topic on the radio a few weeks ago how we're moving away from LPG yet Europe is moving towards LPG because of how clean and cheap it is

  • peterpeterpumpkin on 28/12/2016 - 14:54
    +4

    Didn't even know Woolworth's petrol chain was up for sale. And I check the Trading Post religiously.

    There goes another opportunity.

    • Baysew on 28/12/2016 - 16:57
      +2

      Could've gone straight to the pool room?

    • kiitos on 29/12/2016 - 11:00
      +1

      BP brodened them!

  • Coops1 on 28/12/2016 - 18:52

    Let's hope WISH gift cards can be used…….??….that's the only reason I don't fill up at BP….unless of course there is a good velocity bonus pts offer

  • jimbobaus on 28/12/2016 - 19:04

    According to Sky News Business

    "BP Metro Stations (Previously WW Petrol) will not be offering Virgin Velocity Points, They will accept the WW Discount vouchers, Non Metro Sites will continue to offer the Virgin Velocity points as per their current offer"

  • shortgum on 28/12/2016 - 23:03

    ohhh.. so how far can we go still using those 4cents vouchers together from woolies shops?

    We usually find the cheapest price if possible either coles express or caltex woolies then fill up there for extra 4cents ( + 4cents $5 store buy) savings.

  • Peck on 29/12/2016 - 11:27

    FYI, The cost of the 4cents per litre will be shared 2c by Woolies & 2c by BP.

  • shapers on 29/12/2016 - 13:47

    Email from them:

    "What's new?

    Woolworths has announced it has entered into binding agreements to facilitate the sale of its 527 Woolworths owned fuel convenience sites and 16 committed development sites to BP. Subject to satisfaction of the transaction conditions Woolworths and BP will enter into a long term strategic partnership.

    While the partnership is still some months from commencing as it is subject to regulatory approvals, we are excited about the range of great benefits customers will enjoy when they shop at BP petrol stations.

    For now, nothing has changed.
    Woolworths Rewards members will continue to earn one point for every dollar they spend at Caltex Woolworths^, including on fuel and in store.

    And when they shop at Woolworths supermarkets, their 4 cents* per litre Caltex Woolworths discount will be stored on their card."

  • MITM on 29/12/2016 - 14:22

    The sale is due to the Masters folly, and BP gains at Caltex expense.

  • ROBBIERANGA on 03/01/2017 - 15:42

    So egiftcard still accepted?

  • Nugs on 14/12/2017 - 14:23
    +2

    been wondering how this was going last little while, blocked by ACCC.

    http://www.abc.net.au/news/2017-12-14/bp-blocked-from-woolwo…

    .

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