Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Citgo to Stop Selling Gas to U.S. Stations (Venezuela owned)
Yahoo business/AP ^ | July 12, 12:31 pm ET | staff

Posted on 07/12/2006 11:16:15 AM PDT by saganite

CARACAS, Venezuela (AP) -- Venezuela-owned Citgo Petroleum Corp. has decided to stop distributing gasoline to some 1,800 U.S. stations, shedding a lackluster segment of its business while forcing the owners of those stations to find other suppliers. ADVERTISEMENT

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 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 in Lake Charles, La., Corpus Christi, Texas and Lemont, Ill., according to a statement late Tuesday.

That will mean that over the next year Citgo will cease distributing gasoline in 10 states and stop supplying some stations in four additional states, Citgo spokesman Fernando Garay said Wednesday.

Chavez has long claimed that parts of Citgo's business produce losses for Venezuela and constitute a subsidy for the U.S. economy.

Oil Minister Rafael Ramirez has also charged that Citgo isn't profitable enough and that its parent, state-owned Petroleos de Venezuela SA, or PDVSA, could at some point sell off some of the company's refineries.

However, in a sign of the apparently lucrative relationship between the two companies, PDVSA announced Wednesday that it has so far earned $400 million in dividends this year from Citgo.

The states where Citgo will stop selling gasoline are: Iowa, Kansas, Kentucky, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma and South Dakota. A limited number of stations in Illinois, Texas, Arkansas and Iowa will also be affected.

Venezuela is the world's fifth-largest oil exporter and the U.S. is its top buyer. The United States relied on Venezuela for about 11 percent of its oil supply in 2005.


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events
KEYWORDS: chavez; energy; oil; venezuela
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-91 next last
To: rodeocowboy

Another convert!


61 posted on 07/12/2006 2:44:55 PM PDT by saganite (Billions and billions and billions-------and that's just the NASA budget!)
[ Post Reply | Private Reply | To 49 | View Replies]

To: Unam Sanctam

I had been boycotting Citgo too! hehehehe!


62 posted on 07/12/2006 2:54:41 PM PDT by winner3000
[ Post Reply | Private Reply | To 8 | View Replies]

To: mysterio
Our number one national priority should be replacing oil with something else.

Well said.

63 posted on 07/12/2006 6:24:52 PM PDT by T Ruth (Islam shall be defeated.)
[ Post Reply | Private Reply | To 19 | View Replies]

To: Unam Sanctam
You mean my boycott is working?

Yes *insert mad laughter* you've brought them to their commie knees!!

Now! Get started on the MUSLIMS!!!
64 posted on 07/12/2006 7:21:55 PM PDT by four more in O 4 (God Bless America. Let Freedom Reign.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Lazamataz; humblegunner; Allegra; Flyer; Eaker; TheMom; Bacon Man; Hap

If you take Kirkwood north from my place, right before you hit I-10 you will see a Shell on your right and a Citgo on your left, literally across the street from one another.

The Shell is nice, clean, bright, well-lit, and almost always busy.

The Citgo has two broken windows covered in plywood, and the plywood is covered in graffiti. There are more lights out than on. Four of the eight gas pumps have OUT OF ORDER signs on them. The only people I've ever seen at the Citgo are of the type that instantly make one think "thug."


65 posted on 07/13/2006 9:48:26 AM PDT by Xenalyte (Anything is possible when you don't understand how anything happens.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Xenalyte
If you take Kirkwood north from my place, right before you hit I-10 you will see a Shell on your right and a Citgo on your left, literally across the street from one another.

I know exactly where you're talking about. I've been to that Shell station many times. (And that Starbuck's right there in the parking lot next to it.)

I've never been to that Citgo. It always kind of gave me the creeps.

66 posted on 07/13/2006 10:05:57 AM PDT by Allegra (A Journey of 1,000 Miles Begins with A Bunch of Security Hassles at the Airport)
[ Post Reply | Private Reply | To 65 | View Replies]

To: griswold3

Most of the stations are owned by independent operators. The operators will just put up new signs from another supplier and continue selling gas.

Same Pakistani, different gas.


67 posted on 07/13/2006 10:10:41 AM PDT by MediaMole
[ Post Reply | Private Reply | To 38 | View Replies]

To: Allegra

That Starbucks sees me every Saturday during rehearsal and faire. They always giggled at my Indian getup. Wonder what they're gonna say about Her Royal Highness Gina Montana?


68 posted on 07/13/2006 10:10:57 AM PDT by Xenalyte (Anything is possible when you don't understand how anything happens.)
[ Post Reply | Private Reply | To 66 | View Replies]

To: T Ruth; mysterio
Our number one national priority should be replacing oil with something else. Well said.

Yeah, Command driven economies work so well for the Russkies, the Cubans etc we should repeat their failure in the US. What an utterly dumb idea.

69 posted on 07/13/2006 10:29:06 AM PDT by MNJohnnie (Fire Murtha Now! Spread the word. Support Diana Irey. http://www.irey.com/)
[ Post Reply | Private Reply | To 63 | View Replies]

To: TommyDale

You won't get to the water until your tank is mostly dry. Venezuelan crude is about as low grade as you get. Hence the most likely reason for the knocking.


70 posted on 07/13/2006 10:30:54 AM PDT by Diplomat
[ Post Reply | Private Reply | To 20 | View Replies]

To: scooter2
That's going to give 7-11 a headache. Most of them sell Citgo gas.

I had no idea that 7-11 sold gas. I've never seen one with gas pumps and we have hundreds of them in the area.

71 posted on 07/13/2006 10:36:23 AM PDT by Tokra (I think I'll retire to Bedlam.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Lazamataz

This means I can buy Citgo again.


72 posted on 07/13/2006 10:38:44 AM PDT by jimfree (Freep and ye shall find)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Tokra
I had no idea that 7-11 sold gas. I've never seen one with gas pumps and we have hundreds of them in the area.

Don't know what area you are in but most 7-11's in Washington State sell Citco gas.

73 posted on 07/13/2006 10:38:54 AM PDT by scooter2
[ Post Reply | Private Reply | To 71 | View Replies]

To: saganite

I think the boycott worked.


74 posted on 07/13/2006 10:40:29 AM PDT by Liberty Valance (Keep a simple manner for a happy life)
[ Post Reply | Private Reply | To 1 | View Replies]

To: saganite
I don't care as long as Venezuela keeps buying it's oil rigs from my company. 7 so far this year at about 1.2 million a pop. Good times...

I know most folks hate $75/bbl for oil, but for some of us, it's a Godsend.

75 posted on 07/13/2006 10:44:15 AM PDT by acad1228 (Faithful servant of the Dark Lord Xenu!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: scooter2
Don't know what area you are in but most 7-11's in Washington State sell Citco gas.

I live in Michigan. There are thousands of 7-11s here - I've never seen one that sells gas. Maybe they do in the rural areas, but I've never seen one.

76 posted on 07/13/2006 10:45:27 AM PDT by Tokra (I think I'll retire to Bedlam.)
[ Post Reply | Private Reply | To 73 | View Replies]

To: MNJohnnie
Funding terrorists with every gallon of gas we buy seems a dumber idea to me. Or did that not cross your mind?

Also, President Bush himself said that developing ethanol was an important goal for our country. I know you don't disagree with the President very often. Or ever, for that matter.
77 posted on 07/13/2006 12:02:28 PM PDT by mysterio
[ Post Reply | Private Reply | To 69 | View Replies]

To: coconutt2000

There are 14 states that are affected in some way and 10 are red states, but I don't see what that has to do with it unless you believe that it is some sinister plot against red states having gas. I never thought about that, but you seem to be thinking that. Do you think it is the dems or Venezula? I am just curious on your thinking on this.


78 posted on 07/13/2006 12:26:50 PM PDT by napscoordinator
[ Post Reply | Private Reply | To 3 | View Replies]

To: stuartcr

How awkward. All the gas stations on the naval facilities here in Tidewater VA, are Citgo.



No worries. Virginia is not affected. Actually Citgo is sold on most of the naval commands in the states.


79 posted on 07/13/2006 12:29:03 PM PDT by napscoordinator
[ Post Reply | Private Reply | To 15 | View Replies]

To: Liberty Valance
I think the boycott worked.

glad to be part of it here in Indiana! and also BP for price fixing on propane and screwing my winter heating bill

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=google&guid=%7BBC74442F-CB8C-46C6-BA74-19FC456FFF91%7D&keyword=

80 posted on 07/13/2006 12:38:55 PM PDT by nascarnation
[ Post Reply | Private Reply | To 74 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-91 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson