UPDATE 1-Sunoco to sell retail heating oil business

NEW YORK, Sept 2 (Reuters) - U.S. oil refiner Sunoco Inc (SUN.N) said on Wednesday it would sell its retail heating oil and propane distribution business to Superior Plus Corp (SPB.TO) for $82.5 million in cash.

The move to sell the retail business that supplies liquid fuels and propane gas in Pennsylvania, New York, New Jersey and Delaware was the latest by Chairman and Chief Executive Officer Lynn Elsenhans to cut costs at the Philadelphia-based company.

Earlier this year, Sunoco sold its Tulsa, Oklahoma refinery and permanently shut down the fire-damaged ethylene complex at its Marcus Hook refinery near Philadelphia.

Sunoco's heating oil and propane distribution business includes its Sunoco Home Comfort Services, Mohawk Home Comfort Services and Montour Home Comfort Services.

Shares in Sunoco closed at $25.64 per share on Monday and have slumped 41 percent so far this year. (Reporting by Matt Daily, editing by Gerald E. McCormick)