Phillips 66 to Sell JET Brand Gas Stations for €3 Billion in Cost-Cutting Move

In late 2023, hedge fund Elliott Investment Management acquired a $1 billion stake in Phillips 66 and called for a refocus on the refining business and reduction in operating costs. The decision to sell the JET brand gas stations follows similar moves in the industry, as TotalEnergies recently completed the sale of its petrol stations in Germany and the Netherlands, while Shell has announced plans to divest approximately 1,000 of its petrol stations to focus on establishing electric vehicle charging stations. In a December activist letter to the refiner, Elliott warned that if sufficient progress was not made towards cost-cutting goals, they would push for management changes and the sale of the company’s stake in Chevron Phillips Chemicals (CPChem), as well as its European convenience stores and other non-operated midstream assets.

Phillips 66 has announced its intention to sell its JET brand gas stations at 1,270 sites in Austria, Germany, and the U.K., as reported by Argus Media. The sale is expected to generate €3 billion (about $3.2 billion) and is part of a multiyear cost-cutting project that Phillips 66 has been working on. JET currently operates 813 gas stations in Germany and 154 sites in Austria. This strategic shift by Phillips 66 aims to optimize its portfolio and strengthen its core refining business.