Financial Times FT.com

Credit squeeze felt by petrol retailers

By Sarah Mishkin in New York

Published: June 13 2008 19:20 | Last updated: June 13 2008 19:20

The rising price of oil is creating a credit squeeze in the retail petrol business as more customers pay for their purchases with plastic and station owners increase their borrowings from suppliers.

The challenge for petrol retailers was underscored this week when ExxonMobil cited shrinking profit margins as it said it would sell the 2,200 service stations it owns in the US.

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