The news source reported that ExxonMobil’ decision follows similar actions by other oil companies, who have decided to sell their retail gasoline assets to distributors.
ExxonMobil’ Tiger-themed stations and Mobil outlets will continue to be seen around the US, as distributors buy ExxonMobil products and pay to use the name. Around 75% of 12,000 ExxonMobil-branded gas stations in the US are already owned by distributors.
The oil major has stated that it plans to sell its remaining 820 company-owned stations and an additional 1,400 outlets operated by dealers, to distributors. ExxonMobil has said that the divestment will be achieved over a multi-year duration, according to AP.
Industry experts have said that ExxonMobil’s decision does not come as a surprise, especially at a time when high oil prices have all but cut through any remaining margin for profits. Fuel retailers reportedly depend on gasoline sales to attract customers to their auto service and food and drink offerings.
ExxonMobil has said that it sells about 14 billion gallons of gasoline annually at its branded gas stations in the US.
Ben Soraci, the director of ExxonMobil’s US retail sales as quoted by AP, said: As the highly competitive fuels marketing business in the US continues to evolve, we believe this transition is the best way for ExxonMobil to compete and grow in the future.
