PRICE OF PETROL.

Auckland Star, Volume LXV, Issue 129, 2 June 1934, Page 11

PRICE OF PETROL.

STATE FIXATION SOUGHT. RESELLERS' CONDITIONS. (Froni Our Own Correspondent.) WELLINGTON, Friday. A request that the Government fix the retail price of petrol because of the "suicidal'' competition going on in the "trade was made by a deputation from the New Zealand Petrol Resellers' Association, which interviewed the Prime Minister, Rt. Hon. G. W. Forbes, and the Minister of Industries and Commerce, the Hon. R. Masters, to-day. The conditions unuer which the employees were working owing to the cut-throat prices were emphasised by Mr. P. Fraser, MP., who introduced the deputation. He asserted that unless the Government took steps to stop what Was going on, many would be in danger of being thrown out of employment Mr. W. M. King, the chief speaker, said that when the Government was given power to fix the wholesale and retail prices of petrol by Order-in-Coun-cil retailers expected something would be done, and they now asked that effect be given to the powers the Government had, to protect the resellers." The industry was in a state of chaos, and some retailers were selling petrol at a price which, after taking hi overhead charges, was less than cost. Long hours Were being worked for low wages. Because they had been forced to sell below cost, many retailers had gone bankrupt.

During the past twelve months retailers in Auckland and Cln'lstchUrch had been forced to work on a margin of a halfpenny a gallon on cost for long periods, and they had found it-difficult to hold their price, when working at lid on cost for any length of time. Three well-known accountants had made investigations of the books of several main petrol stations nnd reported that it was necessary for resellers to secure a margin of 3d a gallon in - order to pay overhead and wages. Replying to the deputation, the Prime Minister said that he thought it would be admitted there were too many patrol pumps in the Dominion. It would be unreasonable to raise the price in order to keep them in existence. When the bill was before Parliament last session that aspect Was riot considered. The wisest course to adopt might be to set up a Parliamentary committee to hear evidence. Once the committee had all the information at its disposal it would know how to act.