FIXED PETROL PRICES

Press, Volume LXXII, Issue 21708, 15 February 1936, Page 16

FIXED PETROL PRICES

POSITION REGARDED AS MOST SATISFACTORY

WELLINGTON RETAILERS’ . VIEW

(?&SSS ASSOCIATION TELEOHAM.) ■WELLINGTON, February 14. “Most satisfactory,” was how the spokesman for the Petrol Retailers’ Association of Wellington summed up the price fixation decision when interviewed to-day. The fixation of prices, he said, would put an epd to a position that had given the trade cause for serious concern. “We have been fighting for something like this for a, long time,” he continued, “As dealers in, as it were, one commodity, we are easily and vitally affected by price-cutting, and there have been times in recent years when members of bur association haye been brought face to face with r uin by the instability of the margin of profit in the business.” There had been three price wars in Wellington during the last 15 months, and in each case retail prices lor petrol had been dropped by 2d, which had meant that petrol had been sold either at an unworkable margin of profit or at no profit at all. Conference after conference had been held, but, in spite of all that had been done to organise the trade, price-cutting had continued in one form or another. No Increase to Public “The prices now fixed have ruled in Wellington, as well as in Auckland and punedin, for the last 12 months, so actually there is no increase and the public is not to be called upon to pay any more for its petrol,” said the spokesman. “As to whether the fixed price is too high, I can only say that in the experience of my firm —and that experience is shared by practically every reputable member of the association—a margin of 3d a gallon between wholesale and retail prices is a fair profit and a fair return considering tile service we give and the overhead charges we have to meet. And. do not forget that wages increases and-shortening of hours have got to be faced. Position in Christchurch “You can point out that petrol has been sold in Chirstchurch for a long time now at Is 9d and Is. lOd. That Is true. There has been a lot of trouble in Christchurch, and by the. same token, there , have been a large number of bankruptcies there with prices at cutthroat levels. This has been inevitable.” Discussing the problem of ensuring adherence to the official prices, tne association’s spokesman said that resellers had been given an assurance from Government quarters that the position Would be watched very closely and that particular care would be taken to see that price-cutters did not arrange secret' rebates on oil or general services. General enquiries made to-day indicated that retail vendors of petrol in the main were well satisfied to face higher wages and shorter working hours, provided prices remained fixed at the 3d margin.

STATEMENT BY MINISTER

(PSIBB ASSOCIATION TIUORAU.)

WELLINGTON, February 14. The .Minister . for Industries - and Commerce (the Hep. D. G. Sullivan), questioned as to whether there was any intention of taking action to stabilise petrol prices in centres outside Wellington, replied that if representations were made from other cities, and H it could be proved that circumstances which had justified the action taken in Wellington existed elsewhere, his department would immediately deal with the question and would not hesitate to take similar action.