Daikyo Oil and Maruzen are to be merged with Cosmos Oil in April of 1986. Cosmos Oil was created by the merger of the refining divisions of Daikyo and Maruzen in April, 1984. The firms are claiming that the first merger was great success. They originally expected to save 10 billion yen in the merger of their refining divisions, but they claim that they actually reached 15 billion yen. Specifically, the circular states that if one oil company succeeds in getting the gasoline stand affiliated with another oil company to change to its own oil brand, then that oil company will have to close one of its own affiliated gas stations.
Many gasoline stands change their brands if given discounts on oil and gas prices or rebates.
Most gasoline stations are operating in the red but the government is concerned that the oil companies will engage in excess competition in an attempt to secure market shares before the cheap imported oil starts to enter Japan in 1986. The National Federation of Oil Retailers Unions has announced that it has started its preparation of its industry improvement plan with the initiation of a survey of 35,000 gasoline stands. They are being asked their opinions on the use of joint storage tanks, joint distribution centers, and joint data processing centers.