7-11 dumping Citgo as gas brand

[southsider2k5]

I don't know how many know this or not, but Citgo owned by the government of Venzuela, and part of the reason sited here was because of Hugo Chavez...

 

http://www.bloomberg.com/apps/news?pid=206...r=latin_america

 

Sept. 27 (Bloomberg) -- 7-Eleven Inc., the largest U.S. operator of convenience stores, will start selling gasoline under its own brand after a 20-year relationship with Citgo Petroleum Corp. ends this week.

 

7-Eleven's agreement to buy most of its fuel from Citgo, the U.S. subsidiary of Venezuela's state oil company, expires Sept. 30. 7-Eleven has considered ending the contract since last year because Houston-based Citgo said it would stop selling gasoline in Texas, where the retailer operates ``hundreds of stores,'' Dallas-based 7-Eleven spokeswoman Margaret Chabris said today in an e-mail.

 

The contract is ending amid rising tensions between Venezuela and the U.S. Venezuelan President Hugo Chavez last week called President George W. Bush ``the devil'' and ``world tyrant'' in a speech to the United Nations General Assembly.

 

``This is a business decision, not a political decision,'' Chabris said. ``We knew our contract with Citgo would be ending at midnight on Sept. 30. Regardless of politics, we can sympathize with many Americans' concern over derogatory comments about our country.''

 

Venezuela's Energy and Oil Minister Rafael Ramirez told reporters in Caracas today that ``there is no conflict'' between 7-Eleven and the state oil company, Petroleos de Venezuela SA, which owns all of Citgo.

 

Citgo said in a statement that it decided this year ``after many months of deliberation'' to let the 7-Eleven agreement expire. The contract ``did not fit within Citgo's strategy to balance sales with refinery production after the sale of its interest in a Houston area refinery.''

 

Citgo sold its shares in a Houston joint-venture refinery with Lyondell Chemical Co. in August.

 

Citgo said in July it would stop selling gasoline in 10 U.S. states and parts of four others after it stopped buying fuel from other petroleum processors.

 

The move affects Citgo dealers in Iowa, Nebraska, Kansas, Kentucky, Minnesota, North Dakota, South Dakota, Ohio, Oklahoma and Missouri. Citgo also will cut off sales in some regions of Texas, Arkansas, Illinois and Indiana.

 

7-Eleven will start selling gasoline supplied by Frontier Oil Corp., Tower Energy Group, in Torrance, California, and Sinclair Oil of Salt Lake City. The retailer said in a March 2005 filing with the U.S. Securities and Exchange Commission it was considering other fuel suppliers once its Citgo agreement ended.

 

The removal of the Citgo signs will be gradual, the company said. They will be removed from Dallas-based 7-Eleven's more than 2,100 locations by 2008.

 

7-Eleven was taken private by its Japanese parent company Seven & I Holdings Co. in November 2005.

 

To contact the reporter on this story: Mark Clothier in Atlanta at [email protected] ; Peter Wilson in Caracas [email protected] .

[EvilMonkey]

[Balta1701]

Of course...every single drop of gasoline that Venezuela sold beforehand, it will still sell. It'll just sell under some other name.

 

You know what would be really cool? A law forcing oil companies to display what percentage of each tank of gas comes from which country, i.e. the Made in China stickers you get on everything.

Edited September 29, 2006 by Balta1701

[Cknolls]

Citgo has a refinery in Lemont. Every gas station within 5 miles of this refinery purchases its gas from them.

 

Shell, Mobil, Gas City, Jewel, Speedway Etc......You will still be buying gas from that ass even if you do not buy Citgo...

 

Both Citgo stations in Lemont are very high with their prices. $2.60 and 2.49 respectively this morning. as opposed to 2.39 at a Shell in Woodridge and 2.35 at a Speedway in Woodridge.

Although the Citgo across the street from the refinery is usually fairly competitive.

Edited September 29, 2006 by Cknolls

[mr_genius]

Of course...every single drop of gasoline that Venezuela sold beforehand, it will still sell. It'll just sell under some other name.

 

You know what would be really cool? A law forcing oil companies to display what percentage of each tank of gas comes from which country, i.e. the Made in China stickers you get on everything.

 

 

i like that idea