Venezuela's state-owned oil refining subsidiary in the US is to halt petrol distribution to about 1,900 filling stations in the US, although the company denied yesterday the decision was motivated by tensions between Caracas and Washington.

Citgo, which is wholly owned by Petróleos de Venezuela, said the decision to stop supplying some 15 per cent of its 13,100 US brand-bearing franchises had been taken for business reasons.