CANTON, OHIO – Last week Citgo Petroleum Corp. announced it will no longer distribute gasoline to independently owned stations in the United States, resulting in nearly 2,000 retailers looking for a different supplier.

Meanwhile, in Ohio, retailers such as Campbell Oil Co. President Brian Burrow told the Canton Repository that he saw “the writing on the wall before Citgo announced it would stop selling gasoline” in the state. 

“Citgo has always been an outstanding provider for our company, but, because of our concerns with the ownership’s anti-American comments, we had already started working on a conversion strategy,” said Burrow, adding that Citgo’s announcement confirms the direction he is heading and that the company is in the final stages of negotiating a contract with a new supplier.

“Within the next few weeks, we will finalize our decision and make a commitment to our new branded partner…. We’re looking for a major refiner that has refining capacity close to our area,” said Burrow, adding, “That gives us the best chance to have competitive prices.”

Meanwhile, NACS Vice President of Government Relations John Eichberger told the Associated Press that the impact on affected Citgo-branded stations will largely depend on local market conditions, noting that retailers in competitive markets should not have a problem finding a new supplier that will offer comparable contract terms and may even cover the costs associated with installing new signage and canopies. However, those outlets located in more remote or rural areas may have fewer options.

Eichberger said that one alternative retailers could choose is to “shun the major gasoline brands” in favor of purchasing fuel from an independent distributor.

“Unbranded stations typically get a better price at wholesale,” said Eichberger, adding, “But the inherent risk is you lose your spot in the pecking order in getting product if there’s a shortage.”

The AP notes that Citgo will stop selling gasoline in Iowa, Kansas, Kentucky, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma and South Dakota, as well as a limited number of stations in Illinois, Texas, Arkansas and Indiana.