SELLERS’ MARGIN ON PETROL

Press, Volume LXXXIX, Issue 27226, 18 December 1953, Page 10

SELLERS’ MARGIN ON PETROL

MINISTER REPLIES TO COMPLAINT

REQUEST FOR INCREASE BEING CONSIDERED

The Minister of Industries and Commerce (Mr J. T. Watts) said in Christchurch yesterday that he had informed Mr R. E. Spicer, chairman of the petrol resellers’ section of the motor trade m Christchurch, that an application for an increase in the resellers’ margin on petrol was still under consideration. In a statement issued on Wednesday, commenting on the decision to reduce the price of petrol by Id a gallon, Mr Spicer said the motor trade could not understand why the opportunity had not been taken to give the trade » n increase in its margin, to which it was justly entitled. “No increase has been granted on the resellers’ margin of profit since 1936, and the trade feels that it was justified in asking for la a gallon increase,” he said. , ~ - Mr Watts said the figures relating to the application had not yet been worked out by the department, ana the report haa not yet reached him. Without prejudging the matter m any way, Mr Watts said, he thought ij was fair to point out that there hja been a considerable increase in tne consumption of petrol in the last year or so. In 1951, consumption in New Zealand had been about 145,000.00° gallons, and last year it had risen to about 175,000,000 gallons. This year, he thought consumption would be running at an even higher level, and that the consumption a head of the population might well be a record. There had also been a big increase on the number of motor-vehicles licensee and in the amount of motor travel, saia the Minister. On the other hand, the number of licensed petrol pumps nafl not increased in the same way. . In his statement to “The Press, ’ MJ Spicer had stated that resellers wouia incur a loss of Id a gallon on all stocks in their tanks because, as usual, the trade had been given no indication o» any alteration in the price, said M' Watts. In November. 1952. when the price of petrol had been increased ov 2d a gallon, the resellers had an extra 2d profit on all petrol in their tanks