Exxon Mobil knows that it's hard to make it selling gas at retail where the profits are just pennies on the gallon and much of what is made gets lost to credit card interchange fees. That's why the company has decided to sell off the remaining 820 company-owned outlets it operates and get out of the retailing business altogether.
The largest concentration of company-owned stations are in Texas, with roughly 190 locations, and Florida, with 170.
"As the highly competitive fuels marketing business in the U.S. continues to evolve, we believe this transition is the best way for Exxon Mobil to compete and grow in the future," Ben Soraci, director of Exxon Mobil's U.S. retail sales, told The Associated Press.
Jeff Lenard, a spokesperson for the National Association of Convenience Stores, said Exxon Mobil understands the challenges associated with trying to sell gas at retail. That's why it's getting out of the business.
"They can actually point their attention to some other area where you can make money," Mr. Lenard said. "Retail is incredibly volatile. This way, they can [sell gasoline] wholesale and count on a fairly predictable income."
Discussion Questions: What do you think of Exxon Mobil's decision to sell its company-owned stations? Can any business afford to operate stations today where gas is the primary source of revenues and profits? What needs to be done to make gasoline a viable retail business?