Citgo to stop selling gasoline to hundreds of U.S. stations
CARACAS, Venezuela (AP) - Venezuela-owned Citgo Petroleum Corp. has decided to stop distributing gasoline to 1,800 independently owned U.S. stations, including some in North Dakota.
While it may create some logistical headaches for gasoline retailers in the short term, the move should not have any impact on the nation's overall fuel supply.
Citgo, which is wholly owned by Venezuela's state oil company, currently has to purchase 130,000 barrels a day from third parties in order to meet its service contracts at 13,100 Citgo-branded stations across the U.S. This is less profitable than selling gasoline directly from its refineries.
Instead, the Houston-based company has decided to sell to retailers only the 750,000 barrels a day that it produces at three U.S. refineries.
As a result, the Citgo brand will disappear entirely from 10 states, including North Dakota, and be less common in four additional states by March 2007, when the change goes into effect.
