Petrol Price Rise ‘lnevitable’

Press, Volume CX, Issue 32351, 17 July 1970, Page 24

Petrol Price Rise ‘lnevitable’

(New Zealand Press Association) WELLINGTON, July 16. An increase in the price of petrol, giving the oil companies a fairer return, was warranted and inevitable, the head of one of the major oil companies in New Zealand said yesterday. The managing director of Mobil Oil (New Zealand), Ltd (Mr J. B. Leslie), said in an interview that while there had been petrol price increases over the last 20 years, the wholesale price received by the oil companies had, in fact, been reduced.

Mr Leslie said that while his company shared the concern of all sections of the community about rising prices, he felt it was time the matter of petrol prices was put in true perspective. It was not generally known, he said, that the wholesale price of petrol was the lowest for many years. Since 1951, the wholesale price of regular petrol had decreased by 15.8 per cent But in the same period the retailers’ margin had risen by 46 per cent, petrol tax had increased by 47.8 per cent and the retail or pump price bad increased by 13.7 per cent

In the face of new and Increasing costs it was inevitable that petrol prices must rise.

Mr Leslie listed major cost factors as wage rises, increases in the prices of various commodities, including steel, which was up 48 per cent the new payroll tax, and devaluation. Asked what he considered would be a fair increase, Mr Leslie said: “That is a hard question for me to answer. But I think there should be a sufficient wholesale increase so that the motor

spirits pool account come; back into balance. Then should be at least 1c a gal lon for retailers so they cat get reasonable returns.”

He said it was important i that retail margins be increased so the service to the motorist could be maintained and improved. Under the procedure of Government control it was not necessary for any particular company to apply for an increase in petrol price, he said. Figures in the hands of the Government at present should Indicate that a price risA was well nvprrinfl