GASOLINE WAR.

Auckland Star, Volume LXII, Issue 81, 7 April 1931, Page 2

GASOLINE WAR.

"WILDCATTERS" IN WESTERN AMERICA.

PETROL AT 11 CENTS A GALLON.

(From Our Own Correspondent.)

SAN FRANCISCO, March 18,

A perplexing situation lias developed in the distribution of petrol to motorists in Western America, where independents have arisen to the consternation of the major companies, who for years have controlled the price of gasoline and kindred products. In California the retail price of gasoline has been 2i cents per gallon for the last few years generally. Wildcatters developed gushers in new oilfields in Southern California, and attempts were made to stifle their annoying operations, but without avail The plentiful supply of the motor fuel had a tendency to weaken prices. Government efforts were made to restrict the "widecatters," but with little success, and the flow of oil continued' to increase. The product of the "wildcatters" was designated "bootleg gas," and usually was one or two cents a gallon below the recognised variety purveyed by the major, companies. The latter endeavoured to exterminate the independents by establishing a retail price of 15 cents a gallon. The independents replied with sales signs of 13 cent gasoline. Then the majoj- companies sold for 12 cents, to which the independents retorted with 11 cents prices, slashing profits to the winds. As might be expected, motorists filled their ta,nks and went on extended joy rides around the country, profiting by the cheap petrol. At the time of writing no one knows where the pricecutting will lead to, many predicting ten-cent gasoline generally.