ExxonMobil Corporation said it is getting out of the retail gas business in the United States, US. The branded service stations are the most public aspect of Exxon’s business,but they account for a small part of the company’s profits. Out of the rought 12,000 Exxon Mobil branded stations in the US, Exxon, the world’s largest publicly-traded iol company, owns about 2,220. Exxon lans to sell those service stations over several years. They include about 820 stations that it also operates.
The company will maintain the Exxon and mobil brands, Prem Nair, Exxon spokeeswoman, said, adding that consumer’s will still be buying petrol at stations that carry the Exxon and Mobil names, but they will not be owned by the company. Service stations have struggled, even with $4-a-gallon plus gasoline prices, because they have not been able to pass along to customers their additional costs from soaring crude oil.
According to federal data, petrol prices are up about 31 percent over the last year, and crude oil prices have nearly doubled over the same period. ” we are in a very, very challenging market. Margins are reduced. We feel the best way for us to gorw and compete is through our distributor network,” Nair said.