The Homa Files

Excerpted from WSJ, “Conoco Plans To Sell Rest of Its Gas Stations”, August 27, 2008

This year, gasoline retailers experienced some of the worst profit margins on record.

Retail gasoline-sales are undergoing dramatic change. Giants such as ConocoPhillips and Exxon Mobil and BP have announced plans to sell or close their retail gasoline outlets.

Now, ConocoPhillips has announced that it will sell the remainder of its 600 company-owned gasoline stations . 

The sale is part of oil companies’ efforts to flee low-margin U.S. retail-gasoline sales and focus on finding new supplies of crude oil.

ConocoPhillips will continue to refine oil into gasoline and sell fuel on a wholesale basis to stations..

Few gas-station owners generate the majority of their income from selling gasoline. Profits come from getting drivers to buy other goods and services, such as food and car washes.

Seattle-based PetroSun West plans to add fresh sandwiches, financial services such as bill-paying, and even dry cleaning, Most of the stations it is buying are located in urban, high-traffic areas along the West Coast, from Seattle to Los Angeles.

Full article:
http://online.wsj.com/article/SB121978249439473837.html?mod=hps_us_whats_news

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This entry was posted on August 28, 2008 at 6:00 am and is filed under Oil & Energy, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.