DALLAS, Texas (AP):
Convenience store operator 7-Eleven Inc is dropping Venezuela-backed Citgo as its gasolene supplier at more than 2,100 locations and switching to its own brand of fuel.
The retailer said Wednesday it will purchase fuel from several distributors, including Tower Energy Group of Torrance, California, Sinclair Oil of Salt Lake City, and Houston-based Frontier Oil Corp.
A spokeswoman for Dallas-based 7-Eleven said its 20-year contract with Citgo Petroleum Corp ends next week.
About 2,100 of 7-Eleven's 5,300 U.S. stores sell gasolene.
Citgo is a Houston-based subsidiary of Venezuela's state-owned oil company, and the foreign parent became a public-relations issue for 7-Eleven because of comments
by Venezuelan President Hugo Chavez.
'The devil'
Chavez has called President George W. Bush "the devil" and an alcoholic. The U.S. government has painted Chavez as a destabilising force in Latin America.
7-Eleven spokesman Margaret Chabris said that, "Regardless of politics, we sympathise with many Americans' concern over derogatory comments about our country and its leadership recently made by Venezuela's president Hugo Chavez."
Chabris said 7-Eleven's decision to sell its own brand was based on many factors, including Citgo's decision 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, Illinois.
"Certainly Chavez's position and statements over the past year or so didn't tempt us to stay with Citgo," she added.
Citgo officials did not immediately return calls for comment.
Chabris said a boycott of Citgo gasolene would hurt the 4,000 employees of the U.S. subsidiary, who have no connection to Venezuela.
7-Eleven had been considering creating its own brand of fuel since at least early last year. Company officials said at the time they had spoken with independent fuel
distributors.