SAN RAMON, Calif. -- In response to the current business environment and fluctuating market conditions, Chevron Corp. will be moving to a flat 1.5-cent-per-gallon "prompt-pay" discount for electronic fund transfer (EFT) customers at all West U.S. marketer racks where prompt-pay discounts are currently offered, the major oil company said in a statement provided to CSP Daily News.
With technological advances such as EFT, prompt-pay incentives have become less relevant to current business conditions, it said. The standard 1.5-cents-per-gallon discount will provide [image-nocss] added stability and predictability in times of market volatility, the company added.
Market fluctuations have caused the 1% prompt-pay discount for EFT customers to range from under 1 cent per gallon to over 3 cents per gallon. This change will impact all West U.S. marketer racks in New Mexico; Idaho; Utah; El Paso, Texas; Spokane, Wash.; and Pasco, Wash., and it will be effective on February 15, 2010.
San Ramon, Calif.-based Chevron has a network of nearly 10,000 branded gas stations, including approximately 8,800 Chevron-branded and approximately 1,200 Texaco-branded locations. After a review of its U.S. portfolio in late 2009, Chevron recently announced that it has decided to withdraw its motor fuels operations in some areas of the eastern United States by mid-2010. In January 2010, it said it is restructuring its global marketing and refining operations.
The company is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. It explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels and other renewables.
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