CHEAPER PETROL

Press, Volume LXXIV, Issue 22392, 4 May 1938, Page 10

CHEAPER PETROL

Reduction of Id In All

Areas

REGULATIONS EFFECTIVE TO-DAY (ruM taSOCIATIOB TBLMBAMJ WELLINGTON, May 3. "Regulations were gazetted to-day whereby the wholesale and retail prices of motor spirits throughout all those areas of the Dominion at present covered by the price fixation regulations have been reduced by id a gallon," the Minister for Industries and Commerce (the Hon. D. G. Sullivan) said this afternoon. "Similar reductions are also being made by oil companies in those areas where the price has not yet been fixed by regulation. This reduction will take effect from to-morrow morning. "The position generally regarding the price of motor spirits is receiving the constant attention of the Government," said the Minister, "and I am pleased to be able to indicate that I have received the cooperation of oil companies in petrol matters generally with which I have been faced as Minister."

After referring to the easing of overseas prices and the reduction in tanker freight rates, the Minister said it was hoped that the easing in overseas prices would continue. As soon as the occasion warranted it, the Government would lose no time in taking the necessary steps towards making further reductions.

The Minister said that since the recent rise in the price of petrol the position had been closely watched, and he added: "My department has been in contact with oil companies in discussion of a possible reduction, and with the recent quotations received from overseas it was recognised by the companies that a reduction of id a gallon could De effected. Oil companies themselves approached me to advise that there has been an easing off in overseas prices and tanker freight rates, with the result that a id a gallon reduction in price could be effected. The figures have subsequently been examined by my department and found to be justified."