Petrol Sales

Press, Volume CIV, Issue 30808, 21 July 1965, Page 16

Petrol Sales

Sir, —Any hopes that the amendments to the Motor Spirits Distribution Act, 1963. would put the reselling of motor spirits on a satisfac-

tory and equitable basis between wholesalers and retailers have been slowly fading. Indeed recent happenings in the industry give rise to misgivings that the independence of resellers is in jeopardy. The activities of wholesalers and/or their nominees in a battle with their fellow wholesalers to acquire selected petrol reselling outlets have put the livelihood of some resellers in a precarious position. Loan moneys from oiKcompanies to resellers have been greatly in excess of that amount which would preserve the independence of resellers, and gullible proprietors are being saddled with repayments of loans far in excess of their ability to repay. Can the Minister of Industries and Commerce or the Motor Spirits Licensing Authority give an assurance that the provisions of the Act are being implemented to the letter of the law?—Yours, etc. BITTEN. June 14, 1965. [The Minister of Industries and Commerce, Mr Marshall, says: “Oil companies are precluded from financing resellers of petrol except with the approval of the Motor Spirits Licensing Authority. The authority carefully scrutinises applications for finance by oil companies to ensure that the resellers maintain their position as independent traders. To this end oil-company financing must leave any reseller concerned with a reasonable equity in his business.”]