“BP” Signs Removed as Bulk Petroleum Runs on Empty

By Mari-Elise Gates

BP is draining the unbranded gasoline out of Bulk Petroleum. BP Products North America Inc. filed a federal civil suit against Darshan Dhaliwal, owner of Bulk Petroleum Corp., for knowingly selling unbranded gasoline in approximately 120 gas stations across the country using the “BP” trademark.

In its complaint, filed in a Wisconsin federal court, BP alleges that Bulk Petroleum charged brand-name prices for generic gasoline sold at BP Products stations. The petroleum in controversy is not treated with the protectants and detergents designed and guaranteed by BP to prolong the life of vehicles. BP seeks $17 million in reimbursement from Bulk Petroleum for outstanding invoices and incentive funds that were paid to Bulk Petroleum.

Bulk Petroleum owns hundreds of stations across the country including BP, CITGO, and Marathon stations. In August 2007, BP first noticed a drop in the amount of gasoline that Bulk Petroleum purchased from BP to fill its stations. BP sent a warning letter to Dhaliwal stating that preliminary testing showed that the gasoline being pumped from Kentucky stations was not BP petroleum. In October 2007, BP confirmed its suspicions and announced that the energy giant was canceling its contract with Bulk Petroleum.

BP

(c) ~LOKE~. Used by permission.

Bulk Petroleum denied the allegations and filed a counterclaim against BP products in November 2007 for unjustly canceling its contract.

Though BP gasoline is no longer distributed at Bulk Petroleum stations, BP signs can still be seen at Bulk Petroleum stations across the country. Dhaliwal’s attorney reported that Bulk Petroleum was in the process of taking down the signs. He stated that Bulk Petroleum had asked the court to allow the company until May 31, 2008 to remove the BP signs. BP also conducted an investigation in Kentucky to determine whether Bulk Petroleum was still operating under the BP mark. BP found dozens of stations, as recently as January 7, 2008, still selling gasoline under BP’s mark. In Bulk Petroleum stations in Wisconsin, the message “Cleans, Protects, Younger for Longer” and “BP Invigorates” are still plastered on pumps.

This is not the first time Bulk Petroleum has faced litigation over its gasoline. The state of Wisconsin sued Bulk Petroleum in 2006 for gas gouging after Hurricane Katrina. A Dane County Circuit Court ordered Bulk Petroleum to pay the state $3,091.

Click here to view BP’s complaint.

Click here to view Bulk Petroleum’s answer.