7-Eleven Drops Citgo From Stores

(AP)  7-Eleven Inc. is dropping Venezuelan-backed Citgo as its gasoline supplier after more than 20 years as part of a previously announced plan by the convenience store operator to launch its own brand of fuel.

7-Eleven officials said Wednesday that the company's decision was partly motivated by politics.

Citgo Petroleum Corp. is a Houston-based subsidiary of Venezuela's state-run oil company, and 7-Eleven is worried that anti-American comments made by Venezuelan President Hugo Chavez might prompt motorists to fill up elsewhere.

Chavez has called President George W. Bush "the devil" and an alcoholic. The U.S. government has warned that Chavez is a destabilizing force in Latin America.

"Regardless of politics, we sympathize with many Americans' concern over derogatory comments about our country and its leadership recently made by Venezuela's president," said 7-Eleven spokeswoman Margaret Chabris.

"Certainly Chavez's position and statements over the past year or so didn't tempt us to stay with Citgo," she added.

Instead, 7-Eleven, which sells gasoline at 2,100 of its 5,300 U.S. stores, will now purchase fuel from several distributors, including Tower Energy Group of Torrance, Calif., Sinclair Oil of Salt Lake City, and Houston-based Frontier Oil Corp.

Chabris said 7-Eleven's decision to sell its own brand was based on many factors, including Citgo's decision this summer to stop supplying stations in parts of Texas and other states to focus on retailers closer to its refineries in Corpus Christi, Lake Charles, La., and Lemont, Ill.

But 7-Eleven had been considering creating its own brand of fuel since at least early last year, and some analysts suggested 7-Eleven may now be hyping the political angle a way to curry favor with U.S. consumers.

"This has nothing to do with Chavez," said Oil Price Information Service director Tom Kloza. "They (7-Eleven) just didn't want to be tied to one supplier."

Kloza said all 7-Eleven did was seek out suppliers who could sell it the cheapest fuel and "that was not Citgo."

Citgo spokesman Fernando Garay declined to comment on whether Chavez's comments had a bearing on 7-Eleven's change in suppliers. He said the break was "a mutual agreement of the two companies."

Garay said 7-Eleven was a "significant" part of Citgo's retail presence in Texas and Florida. "It was a valued relationship," he said.

In July, Citgo decided to stop distributing gasoline to 1,800 independently owned U.S. stations because it was a lackluster segment of its business.

In order to meet service contracts at 13,100 Citgo-branded stations across the United States, Citgo had to purchase 130,000 barrels a day from third parties — a less-profitable business model than selling gasoline directly from its refineries.

Citgo was founded in 1910 as the Cities Service Co., according to the company Web site, and 7-Eleven's predecessor, The Southland Corp., bought Citgo from Occidental Petroleum in 1983.

7-Eleven sold half its interest in Citgo in 1986 and the remaining stake in 1990 to Petroleos de Venezuela SA.

[braithwa]

Chavez has not made anti-american comments. He has made anti-bush comments.

[flolake]

Addendum:

I stand by my earlier entry on this story. I will add that Chavez has somewhat of a complex history yet thus far he has prevailed.

A large segment of America is asleep. If it takes an outside dictator to twang our conscience strings; so be it.

Every country represented in O.P.E.C. has the priviledge of the Chair for a one year term. More often than not, the Chair's position prevails for that time period. Chavez wasn't the first to drive up prices on his watch & he won't be the last.

The present & past administrations have slowly aspired to allowing the U.S. oil companies to jerk up the price of oil in anticipation of an event. That at times has meant an artificial upswing if a hurricane is "predicted" to take an oil disruption path. Ever notice how slowly it falls AFTER a false alarm? It's a bad mixture all around.

This country is in desperate need of a change of many policies. When anyone by actions or deed can make people think in a constructive way, it would bode well for us to listen. Whether it is Chavez trying to pinch our Prez or Richard Branson promising BILLIONS for alternative fuels; we need to listen.

[jd200656]

President Chavez of Venezuela was one of the first to offer aid to New Orleans, which Bush refused.He gives heating oil to the forgotten people of this country. Also during the last energy crunch President Chavez could have put the United States on it's knees by the cut off of Venezuela oil. He was kind enough not to do this. Shame on 7-11 for using Citgo as it's excuse for doing what it's elite capitalist handlers told it to do. God Bless Hugo Chavez!

[gmond]

7-11 is just putting a political spin on business as usual to entice idiots into buying their so-called patriotic action. And judging from the responses here, the idiots have already bought it.

[rarias2-2009]

I am no fan of Hugo Chavez. I agree that the UN Speech of Hugo Chavez should be read not quoted randomly. GWB is noted as the Devil but it is supported, not just by Chavez but by GWB's actions himself. This Adm represents less than 50% of the American public's views, acts on its own, from "macho" testrosterone, greed and power. It has bred a culture of fear & chose to wage war on the concept of "terror". Straying from reigning in Al-Queda & Osama, instead bringing terrorists to Iraz that didnt support terrorists til USA invaded under the guise of bringing democracy. Labeling people depends on the political side you are on. Our forefathers were terrorists to England. If you disagree or have an opinion contrary to the Admin you are a traitor, unpatriotic,a terrorist supporter-ridiculous! We are threatening Iran because of nuclear weapons? USA has over 2800 nuc weap & the only coutry to use one as a weapon. we know what countrs have them & how many. One country having 100 or more but refuses to say so is ISRAEL. We sanction govs we dont trust BUT can we TRUST ISRAEL. They did their own thing in Lebanon & will do it again if in their best interest. Distancing ourselves fm Israel would certainly help us in the Middle East. Sorry, I digressed Read Chavez's speech before you come to a conclusion-you may not agree with his politics - but it has some validity. A link to the speech is below: http://www.rense.com/general73/hellof.htm

[boston1954]

Actually we are more like 280 million.

[cathaleen]

Americans are like a big family. We all may not get along, dislike each other, yell at each other,
even hate each other but when someone from outside our family denigrates someone in our family, even though we may not like him or her, it makes us angry. It's not good to make 250 million people angry. I think it is a good idea to show this gentleman from Venezuela the door (along with Citgo oil) and let him know that it is not good business to come into our country and call our President names the way he did.

[jbb2213]

Boycott Citgo. Way to go 7/11 !!!

[grazinggoat]

Next step, Chavez kicks US companies from Venezuela, and vice-versa. A slacking in relationship between the two countries... Flooding of world market with Venezuelan Oil, Oil prices will drop and EverbodyAll of that 'cause of great exterior policies of the G.Walking-LiarBush Adminstration. Oppression and occupation of Others' land. Change this prez and the world will be better off...

[optimas2]

Flolake,

Did Chavez get your attention when he was imprisoned for leading a failed coup to overthrow the Venezuelan government? What about when, after he was arrested, he declared that he failed "only for the moment?"

Did Chavez get your attention when he, in 1999, lobbied OPEC hard to cut production? What did he do for the world poor then? He certainly didn't mind sticking it to them then, did he? Yeah, Chavez really looks out for the downtrodden...by lobbying a global cartel to raise oil prices.

Did Chavez get your attention when he effectively disbanded the national legislature simply because it opposed his policies?

Yeah, that Chavez sure is a class act. I'm glad he got your attention last year and not 15 years ago, when he SHOULD have been getting your attention. Chavez is a communist, power hungry dictator. There is no other way to describe him. He is the real life Billy Flynn character from "Chicago;" he fools people with flash and rhetoric, and while you're agog about how he's giving away a few barrels of oil to people in Harlem, he engineers the passage of laws that criminalize media criticism of the government and sabotages the passage of the FTAA, which might be the single most effective policy in truly aiding the poor.

Although it's tough to challenge Mugabe as the world's worst leader, Chavez gives it an excellent try. Don't forget, Chavez said of Mugabe: "He is a true warrior of freedom." Hugo Chavez: What a guy!