Citgo CEO: Gas Price Bill Makes No Sense
Thursday, June 05, 2008
As a gasoline refiner and marketer, CITGO sells its products to wholesale marketers, who in turn sell to retailers at prices set by market forces, said CITGO Chairman, President and CEO Alejandro Granado. "Therefore, our company does not fix prices," he added.
Granado pointed out that the international oil market is well supplied and news stories confirm this when they tell us that oil producers, such as the OPEC member countries, continue to produce enough oil. He cited as an example recent news stories about Algeria having trouble placing its production in the international oil market.
In connection with this topic, he indicated that a bill recently passed by the House of Representatives, known as Gas Price Relief for Consumers Act of 2008, does not make any sense. "Refiners' margins are seriously affected by a distorted oil market which is not responding to fundamentals but rather to a combination of other factors, including geopolitical tensions, the weakness of the U.S. dollar and financial speculation," he said.
Granado was speaking at the opening of CITGO's first Supplier Diversity Networking Event for Minorities. The ceremony was attended by dignitaries, business leaders and more than 600 potential vendors.
Source: Citgo Petroleum Corp.
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