Talk:LUK Oil

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Saw first Getty gasoline station trademarked as LUK Oil November 5, 2005. Artificial Intelligence 17:18, 5 Nov 2005 (EST)

"There is a glut of oil flooding the market right now, so much oil that the "known reserves could satisfy customer demand levels for the next 120 years," according to Roy Littlefield, executive director of the Maryland Service Station Association. Gas is no longer the main profit center for service stations. It acts as a loss leader. ... Between the oil glut and the surge of new independent competitors entering the market, U.S. petroleum companies are experimenting with different marketing ideas."
"The glut of oil is but one challenge small stations face, notes association executive director Littlefield. There are new competitors. Independent refineries, such as Luk Oil, a Russian company, are not only entering the market but are selling gas cheaper in high volume locations such as Wal Mart and Home Depot as well as food chains such as Stop & Shop in New England and Metro Food Markets and Shoppers Food Warehouse locally.
"Luk’s projections call for it to have some 5,000 outlets in the United States over the next seven years, says Littlefield.
"These independents have no stations and so no overhead. They sell directly to large retail establishments, such as Price Club, which derives its income in large part from membership fees.
"These types of high volume locations, says Littlefield, can sell hundreds of gallons of gas a month at a break even cost, which is usually around 18 cents less than the dealer. The cheap gas spurs inside sales."