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From Times Staff and Wire Reports

Chevron Dealers Say Company Hurting Them on Rents: Chevron dealers who run company-owned gas stations are upset over company policy changes that they say could double some rents. “Based on today’s operating expenses, it’s getting virtually impossible to operate a business at a profit,” said Chuck Novak, who operates a station in Woodland Hills. San Francisco-based Chevron Corp. has 1,425 dealers in California, 925 of whom rent their stations from the company. It introduced a new rent structure this month and began charging dealers a 3% fee on non-Chevron credit card purchases. Dealers estimate that the cost of those changes will range from $20,000 to $50,000 a year. Bill Berghoff, Chevron’s general manager of retail brand services, said the changes bring Chevron into line with other oil companies. Berghoff acknowledged that tough competition at service stations, particularly in Southern California, will make it hard for the dealers to recoup the higher expenses by raising prices.

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