RUMOURS DENIED

Ashburton Guardian, Volume 60, Issue 30, 15 November 1939, Page 3

RUMOURS DENIED

THE PRICE OF PETROL. NO INCREASE INTENDED. (Special to the “Guardian.”) CHRISTCHURCH, This Day. Rumours that another heavy increase in the price of. petrol is to bo made with the lifting of. restrictions next month have been current in the last few days, but the Minister for Industries and Commerce (the Hon. D. G. Sullivan), in response to an inquiry, declares that these rumours are absolutely without foundation.

A correspondent, in a letter to the editor of “The Press,” asked if there was any truth in the rumour that a further increase of 4d a gallon was to he made on December '!, and declared that if this was correct the authorities should announce their intention at once in order to allow motorists to budget for Christmas holidays and tours. The Minister replied as follows: “With reference to the letter submitted you concerning a further increase in the price of peti’ol as soon as the restrictions are lifted, I would advise you that there is absolutely no foundation •whatsoever for such a statement.

“The question of the price of motor spirit is one that has been the subject of examination by my department ever since this Government took office, and under the regulations fixing the price it has always been necessary to obtain Government sanction before a move can be made, and in every case whether the movement is upwards or downwards the matter has been subject to most careful examination. .

“Advices in connection with prices generally are received weekly by my department and while at the moment there has been a slight hardening, and an increase in tanker freight rates and war risk insurances, the oil companies are still selling from stock, which arrived at a low price. The recent increase of Id was due to exchange fluctuations entirely, and a“s the oil companies remit on sales made,- such increase proved to be warranted.

“As I have indicated from time to time in connection with prices generally, if a case exists for an increase this will be thoroughly investigated, and if found necessary the appropriate authority will be given. You may rest assured, however, that there is no suggestion whatsoever that prices will rise to the extent of 4d a gallon as from December 1 next, and that before any additional price advances are made the fullest possible examination of the whole position will be made.”