by Brian Byrne. The highly competitive petrol retailing situation in Ireland is believed to be the main reason why petroleum giant Shell is pulling out of retail sales in Ireland.The move will likely close its 160 filling stations around Ireland, though a number of Irish businesspeople are believed to be in negotiation to buy the business, valued at €150 million.
It is believed that many of the sites would be redeveloped as commercial and apartment buildings.
Shell said yesterday it intends to sell 'as a going concern'. But it is thought the most attractive part of the business as such would be the 30 oil distribution centres located across the 32 counties.
Competition from giant retail chains such as Tesco is making it difficult for small retail petrol operators to compete, with margins very tight in terms of the cost of managing high-cost stock.
The number of petrol retail outlets in Ireland has almost halved over 35 years, to less than 2,500.
