RETAIL PROFIT ON PETROL

Press, Volume XC, Issue 27367, 4 June 1954, Page 3

RETAIL PROFIT ON PETROL

INCREASE OF IN MARGIN

NO CHANGE IN PRICE TO PUBLIC (New Zealand Press Association) WELLINGTON, June 3.

The resellers’ margin on motor spirits is to be increased by a gallon, but the price to the public will not change. Announcing this today, the Minister of Industries and Commerce (Mr J. T. Watts) said that* except for a period during petrol rationing, when an extra id a gallon was allowed to compensate for reduced sales, the retail margin on motor spirits had been 3d a gallon since 1937. The retail margin was not a percentage margin on costs, but a fixed amount a gallon. “The continually-rising volume of motor spirits sold by retailers has. of course, substantially offset increases in resellers’ cost,’’ Mr Watts said. “Whereas in 1949 sales approximated 130.000.000 gallons, sales in the current year are being made at a rate of somewhat over 200,000,000 gallons a year—--4,000.000 gallons a week.” After an exhaustive inquiry the Government was satisfied that a small increase in the resellers’ margin was justified, he said. “The motorist will be glad to know that there is sufficient credit in the pool account to cover the increased margin, and that there will be no increase in the price of petrol to coincide with the change,” the Minister said.