Chevron-Texaco Reduces Branded Outlets by 200

Chevron-Texaco Aviation general manager Keith Sawyer said the company is changing its business model as relates to selling aviation fuel to the retail (general aviation) market. As of June 1, he said, "We are aligning our aviation marketing assets with our manufacturing system to focus on the areas where our supply reliability is the strongest." One way to translate that is to say that the company is pulling back to market GA fuel only where it is most convenient to transport the fuel — in other words, close to the refineries. However it is expressed, the net result is that Chevron-Texaco will now market general aviation fuel — jet A and 100LL — only in the following states: Alabama, Arizona, California, Florida, Georgia, Idaho, Louisiana, Mississippi, Nevada, Oregon, Texas, Utah, and Washington. Chevron-Texaco branded dealers elsewhere — amounting to some 200 outlets — will have to find a new supplier. And less competition usually means higher prices at wholesale and retail levels. In addition, Chevron-Texaco is outsourcing the distribution to Hiller/Air Petro, described by the company as its, "major distributor." Distribution of aviation fuel represents a much higher percentage of a supplier's overhead than auto fuel or virtually any other petroleum product. Part of the reason is the high level of quality assurance required at all steps along the way — storage tanks, pipelines and delivery trucks. And compared with jet fuel, 100LL avgas, with its lead content that cannot be mixed with unleaded fuels, is even more problematic.