SOUTH JERSEY, New Jersey — South Jersey Gas Corp. has decided to sell a premium gas tank, as it continues to struggle with its struggling gas market.
The South Jersey gas company announced the sale of a premium tank to a buyer in Texas last week.
In addition to the premium tank, the buyer has agreed to pay an additional $1,150 per gallon in fuel surcharges to offset a gas tax increase, according to a news release.
“The South Jerseys have always been a leader in our market,” said Jeff Rader, CEO of South JerseyGas.
“The fact that they have decided to pursue an exit strategy is a great sign for our industry.
We will continue to compete on a number of fronts, including pricing and availability, as we continue to make our business work for our customers.”
South Jerseys has been in a tough market for a number.
Last month, it announced a price increase of 5 cents per gallon for its regular gasoline.
That price hike came as gas prices surged by as much as 20 percent in some markets.
SouthJerseyGas.com also posted a slide showing the average price for a gallon of regular gas in the U.S. last month was $2.75, up from $2 per gallon a year ago.
This week, the company also announced the start of a five-month supply reduction plan, which will see it cut off more than 1.7 million regular-gas stations and 1.5 million gas stations that had been licensed to sell natural gas.
It also announced plans to cut the number of locations it operates in New Jersey and Pennsylvania by more than 50 percent by the end of the year.
Its chief financial officer, Doug McLeod, told reporters the company plans to make more capital investments to help its businesses and its customers.
But that doesn’t mean SouthJersey Gas can’t face new challenges.
As the company has struggled to meet its long-term goal of being able to generate enough gas to replace its aging fleet of natural gas trucks, the natural gas industry has become a growing target for competitors.
Since mid-March, the average daily gas demand for the nation’s biggest natural gas suppliers, Exxon Mobil Corp. and ConocoPhillips Co., has more than doubled to more than 20 million barrels a day, according the Energy Information Administration.