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Thursday, June 12, 2008
Exxon Mobil Plans to Exit the Gasoline Business
FOXBusiness
The largest publicly-traded oil company is reportedly planning to exit the retail gas industry. Exxon Mobil (XOM) will sell 820 of its company-owned retail gas stations, as well as 1,400 of its dealer-operated locations to gasoline distributors.
“As the highly competitive fuels marketing business in the U.S. continues to evolve, we believe this transition is the best way for ExxonMobil to compete and grow in the future. Quality, dependable Exxon and Mobil branded fuels will continue to be part of the branded distributor offer,” said Ben Soraci, U.S. director of retail sales in a statement.
Exxon and Mobil stations will maintain a presence nationally, since nearly 75% of the 12,000 Exxon Mobile gas stations throughout the country are owned by distributors. Exxon will continue to sell gasoline to those stations and be paid by those stations for the use of the Exxon Mobil name.
The market for retail gasoline has been dealing with lower profit margins due to the soaring price of crude oil. The sale is expected to occur over a “multi-year period,” the company said.
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