PETROL SALES IN BRITAIN

Press, Volume LXXXIX, Issue 26944, 21 January 1953, Page 11

PETROL SALES IN BRITAIN

RETURN TO BRANDED SPIRITS

“PRICE WAR” BETWEEN COMPANIES POSSIBLE Apart from the "price war” which, it is thought, may develop between the petrol companies when brands again become available to motorists on February 1. petrol retailers are concerned about the profit margins which will be allowed to them on the premier grade spirit, according to the motoring correspondent of the “Financial Times.” Mr Harold* A. Smith, president of the Motor Agents* Association, which claims to represent about 90 per cent, of the garage trade, said in Aberdeen recently that there were several important details they wanted from the petrol companies, particularly the trading margins on the higher-priced premier grades of petrol. “The retailer,” he said, “should be entitled to the same percentage on the retail price exclusive of tax as he at present receives on pool petrol. We have fought and won the battle of trading margins with the Ministry of Fuel and Power, and we have justified the return the trade receives on pool petrol.” 2s 6d a Gallon Tax Referring to the duty of 2s 6d a gallon, on petrol, the president said that this tied up retailers’ capital to the extent of 12s duty on every £1 worth of petrol sold. This tax, which produced £182,000,000 a year for the Chancellor, was a tax on industry and was one of the factors that had raised the cost, of living. “With the new refineries going into production in this country, petrol is no longer a scarce product, causing excessive dollar expenditure; this tax should be considerably reduced.” On the question of “one-company” petrol stations, Mr Smith urged the retailers to keep the initiative so that they co .?4£ “jump off” when they wanted to. There are many problems connected with the selling of petrol that are common to the petrol companies and to the retailers, and I think,” he said, "that we are much nearer the day when we can get together round the table to discuss these problems.” The president also discussed tyres, the other “bread and butter” line of the retailers. He said that it looked as if the Tyre Plan was fading out. (This is a plan for the orderly marketing of tyres and is operated by the Tyre Trade Joint Committee.) “I shall be sorry to see this happen,” he saui. "Whether we shall obtain orderly distribution by eliminating the Tyre Plan, is doubtful. We do not want to return to larger margins and with them the chaos that existed before the war. "The association will do Its best to maintain the principles laid down in the Tyre Plan, such as the reasonable margins, tyre register, and user rebate scheme.”