HOUSTON -- CITGO is introducing several new offers for its branded marketers in 2018, which it debuted during its 30th annual series of roundtables in San Antonio and Nashville in January.
One goal of the roundtables is to hear about marketers’ issues and plans for the coming year. Alan Flagg, assistant vice president of supply and marketing, told CSP Fuels that CITGO marketers are facing a few key challenges in 2018, including making expensive upgrades to their fuel dispensers to meet the looming standards deadline for chip credit-card payment security in October 2020. Labor issues are also top of mind, he said.
“Marketers that own and operate their own stores are reporting that wage inflation and increased turnover has impacted their overall profitability,” Flagg said.
That said, CITGO marketers also see an opportunity to grow in 2018—through acquisitions. “Many of our marketers have indicated they are currently looking at acquiring new business through that route vs. organic growth,” Flagg said.
Another growth avenue for CITGO fuel marketers, particularly in Midwestern states is introducing E15, the 15% ethanol blend, to the product mix, as a means to grow their fuel profits.
Flagg shared details on how CITGO plans to help its marketers prepare for fuel-pump upgrades and more. Here are six updates for 2018 ...