ExxonMobil could have trouble selling gas stations
5 stars based on
49 reviews
ExxonMobil, the highest-profit company in the world in recent times, is selling its 2, company-owned U. It will cut costs by allowing it to deal with petroleum distributors who run or oversee many of the stations, instead of dealing with individual stations.
The distributor system "is pretty efficient for us," ExxonMobil spokeswoman Premlata Nair said Thursday. Whether distributors will queue up to pay hefty prices to buy the Exxon and Mobil sites is uncertain, however. As a result, the OPIS report speculated, there might be fewer petroleum distributors willing or financially able to buy Exxon and Mobil sites. It wants to unload them as petroleum retailing "continues to be challenging, with reduced profit margins and significant competitive growth," Nair said.
A recent OPIS analysis showed that as gasoline prices have shot up, retailers were earning an average 3 cents a gallon of gasoline sold, vs. Latest government data, based on April numbers, show a bleaker picture: Low profits at a time of record-high prices might seem backward. It happens because gasoline retailing is so competitive — every station's prices are posted in huge numbers. Even as their wholesale prices rise with the jumps in crude oil prices, station operators are reluctant to be first on their corner to go up a penny.
A variety of petroleum marketing studies show drivers will do everything from risky turns across heavy traffic to driving miles out of their way to save a penny a gallon. If a station chases off customers by raising prices, it has fewer potential buyers for the truly profitable items in its convenience store, such as beer, soft drinks and snacks. Thus, stations raise prices slowly. They also lower them slowly when wholesale prices drop, hoping to make up some lost profits.
Selling the ExxonMobil-owned stations will be done over several years. The change should be largely invisible to fuel customers, Nair said. Stations will display the same signs and sell the same products. ExxonMobil could have trouble selling gas stations. Michael Cohen battles Stormy Daniels' lawyer over publishing his bank information.
North Korea threatens to withdraw from summit with Trump. Former Qatari diplomat dismisses allegations from porn star's lawyer. Israeli troops kill 2 and injure hundreds, Palestinians say. At least 1 killed, 3 injured after mysterious explosion rocks medical building. After 16 months, Pompeo ends Tillerson's hiring freeze at State Dept.
Officers on what happened in 'ambush style attack' that killed one of their own. Senate Republicans don't press Trump on McCain insult during meeting. Haspel says CIA should not have carried out harsh interrogations, earns Dem support. Trump lawyer enters White House with experience handling a presidency under fire.
Impeaching Trump will galvanize Dems: Tom Steyer on Powerhouse Politics. Trump invites family of fallen police officer onstage at annual memorial event. Pennsylvania highlights slate of four primaries Tuesday night. Former for-profit college exec's efforts could help former employer. Schwarzenegger challenges Trump to join green energy efforts. No issue with releasing Cohen info. Nikki Haley places blame for Gaza violence on Hamas and Iran. Should we be concerned with second-hand pot smoke, especially around children?
Woman fights off intruders who were armed with AK Pharmacist disarms woman who tried to rob him at gunpoint. Family of girl missing since s helped dig in search for remains. Teacher shot on Mother's Day, months after leaked police report involving teenager.
Meghan Markle's dad not 1st royal relative caught in scandal. Meghan Markle's dad's role in wedding in question after paparazzi scandal. Renowned author Tom Wolfe dies at Man whose blood plasma saved over 2.
Parents of 2 girls killed in the Parkland shooting are running for school board seats. Co-pilot partially sucked out of broken cockpit window. Guys' guide to getting in shape for a wedding. Comedian releases novel inspired by his Irish roots. Female high school quarterback throws TD on 1st pass in varsity game.
