HOUSTON -- CITGO Petroleum Corp. announced late yesterday the decision of its board of directors to realign the company's national retail gasoline network footprint. This action will result in a stronger company presence in the East and Gulf Coast regions, and a transitioning from parts of the Midwest, Kentucky, Oklahoma and northern Texas by the end of March 2007.
We are taking this action to best position the company for a strong future. said F alix Rodr a guez, CITGO president and CEO. CITGO's current branded sales exceed our in-house production capabilities, [image-nocss] straining our resources and potentially compromising our ability to provide optimum service to our customers. We will be focusing on strengthening our presence in marketing areas in the Northeast, South, mid-Atlantic and portions of the Midwest that are served by our refineries in Lake Charles, La., Corpus Christi, Texas, and Lemont, Ill., while reducing the current number of branded locations in markets in which we are less efficient.
In order to offset the roughly 130,000 barrel-per-day (bpd) shortfall required to meet customer obligations, CITGO purchases gasoline from other refining companies on the open market, a move that places the company at a competitive disadvantage.
At the end of this realignment, the number of CITGO branded locations will be reduced by approximately 14%, the company said, with little impact on the more than 10 million customers who visit our locations each day.
CITGO markets gasoline via agreements with independent marketers and does not own or operate any of its locations, including those in the affected areas.CITGO will work with each marketer to ensure the transition is as smooth as possible for their operations and customers, it said.
Our commitment to the markets where we are staying is as strong as ever. This strategy allows CITGO to better serve its customer base by focusing on reliable supply, competitive pricing and exceptional customer service, Rodr a guez said.
Click here to view the Marketing Realignment Kitwhich provides details of withdrawal and retention areasas well as additional information on this initiative.
Houston-based CITGO is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals, refined waxes, asphalt and other industrial products. The company is owned by PDV America Inc., an indirect wholly owned subsidiary of Petr aleos de Venezuela S.A., the national oil company of the Bolivarian Republic of Venezuela.
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