BOSTON - Citgo Petroleum Corp, the U.S. arm of Venezuela's state oil company, has suspended its program to provide free heating oil to hundreds of thousands of low-income U.S. families, the head of the nonprofit organization that distributed the fuel said on Monday.
The Andean nation attributed the move to the sharp drop in the price of oil as well as the spreading world economic crisis, said Joseph Kennedy, chairman of Citizens Energy, which had distributed about $100 million worth of Venezuelan oil for each of the past three years.
"The current economic meltdown has just forced them to reevaluate all the assistance programs that they provide," Kennedy, a former Congressman and member of a storied U.S. political family, told reporters.
Kennedy said Citgo officials had told him they plan to resume the program in the future, but it is not clear when.
Citgo spokesman Fernando Garay declined comment but said the company would release a statement regarding its heating oil aid programs later Monday.
Houston-based Citgo, with support from Venezuela's President Hugo Chavez, said its program benefited as many as 235,000 U.S. families in 23 states.
Chavez, who considers U.S. President George W. Bush his nemesis, widened the heating oil aid program as prices surged in recent years, while accusing the Bush administration of neglecting the U.S. poor. Chavez has described the program as "humanitarian aid," even though average incomes in the United States are about 10 times those in Venezuela.
Kennedy asked why no U.S. oil companies have stepped up to fill the gap.
"What about U.S. oil companies?" asked Kennedy, the nephew of slain U.S. president John F. Kennedy. "How come I can't get one barrel of oil from U.S. oil companies?"
The suspension of the heating oil aid would come as easing oil prices make heating oil more affordable for many U.S. families this year -- though rising unemployment has given them a new economic worry.
The price of heating oil in the U.S. market fell to an average of $2.33 a gallon during the last week of December, down 7.6 cents a gallon from the previous week and down $1.01 from the same week of 2007, according to the U.S. Department of Energy.
Venezuela, a member of the Organization of Petroleum Exporting Countries, enjoyed surging oil revenues for much of the past five years but has seen that income stream dwindle recently. Oil prices have fallen by around two-thirds since reaching a record of more than $147 a barrel in July.
Citizens Energy said it encouraged U.S. families to write directly to Venezuelan President Hugo Chavez and ask that Citgo continue to provide the U.S. poor with "much-needed" heating oil aid. Meanwhile, Citizens said it would continue its own heating oil assistance programs in Massachusetts, Ohio, Kentucky, Pennsylvania and Rhode Island.
The Andean nation attributed the move to the sharp drop in the price of oil as well as the spreading world economic crisis, said Joseph Kennedy, chairman of Citizens Energy, which had distributed about $100 million worth of Venezuelan oil for each of the past three years.
"The current economic meltdown has just forced them to reevaluate all the assistance programs that they provide," Kennedy, a former Congressman and member of a storied U.S. political family, told reporters.
Kennedy said Citgo officials had told him they plan to resume the program in the future, but it is not clear when.
Citgo spokesman Fernando Garay declined comment but said the company would release a statement regarding its heating oil aid programs later Monday.
Houston-based Citgo, with support from Venezuela's President Hugo Chavez, said its program benefited as many as 235,000 U.S. families in 23 states.
Chavez, who considers U.S. President George W. Bush his nemesis, widened the heating oil aid program as prices surged in recent years, while accusing the Bush administration of neglecting the U.S. poor. Chavez has described the program as "humanitarian aid," even though average incomes in the United States are about 10 times those in Venezuela.
Kennedy asked why no U.S. oil companies have stepped up to fill the gap.
"What about U.S. oil companies?" asked Kennedy, the nephew of slain U.S. president John F. Kennedy. "How come I can't get one barrel of oil from U.S. oil companies?"
The suspension of the heating oil aid would come as easing oil prices make heating oil more affordable for many U.S. families this year -- though rising unemployment has given them a new economic worry.
The price of heating oil in the U.S. market fell to an average of $2.33 a gallon during the last week of December, down 7.6 cents a gallon from the previous week and down $1.01 from the same week of 2007, according to the U.S. Department of Energy.
Venezuela, a member of the Organization of Petroleum Exporting Countries, enjoyed surging oil revenues for much of the past five years but has seen that income stream dwindle recently. Oil prices have fallen by around two-thirds since reaching a record of more than $147 a barrel in July.
Citizens Energy said it encouraged U.S. families to write directly to Venezuelan President Hugo Chavez and ask that Citgo continue to provide the U.S. poor with "much-needed" heating oil aid. Meanwhile, Citizens said it would continue its own heating oil assistance programs in Massachusetts, Ohio, Kentucky, Pennsylvania and Rhode Island.
