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SAN ANTONIO -- Tesoro Petroleum Corp. and the Petroleum Marketers Oil Co. LLC (PMOCO) Wednesday announced an agreement under which Tesoro will supply gasoline and diesel fuels to PMOCO licensees in California, Oregon and Washington.
The agreement calls for the supply of motor fuel at terminals in the three states at set volumes on a contractual basis to PMOCO's growing chain of Spirit branded gas stations and convenience stores.
"This landmark agreement will propel the growth of PMOCO's Spirit brand on the west coast. More than one-third of the 100 Spirit licensees are located in the West," said Harry Youngling, chairman of the PMOCO management committee.
PMOCO is a federation of 43 state and regional associations representing 8,000 petroleum marketers. The group launched its Spirit brand in February 2002.
The deal is considered a boon for struggling Tesoro, which has battled declining fuel margins and high debt for the past two years.
Tesoro also has plenty of experience in nurturing new retail brands. In addition to growing its own 2Go convenience store brand, Tesoro operates a network of approximately 100 Mirastar gas stations under a branding agreement the refiner/marketer has with Wal-Mart Stores Inc.
"We are pleased to have the opportunity to work with PMOCO. This agreement is an example of our continued commitment to supply product to the independent marketer," said Steve Wormington, executive vice president of marketing for Tesoro. "We believe that PMOCO's Spirit provides a new offering and alliance for the independent marketer with the opportunity for reliable supply."