Petrol "‘lock-out” leaves drivers high and dry

Press, Volume CXIV, Issue 33514, 20 April 1974, Page 1

Petrol "‘lock-out” leaves drivers high and dry

Petrol stations in many parts of the country padlocked their pumps yesterday in protest against the Government’s action over the latest fuel price rises—but this degree of protest was ! hv nn means universal

Decisions were made | from area to area, some ! branches of the Retail j Motor Trade Association recommending a complete shut-down until profit margins on petrol I sales are restored, and others calling only fo" restricted hours of I petrol sales. The second group are in

effect, “working to rule” under the terms of their petrol resellers’ licences, but the more militant groups—in Christchurch, Dunedin, Gis. borne, Marlborough. Levin and Taupo—may be putting their licences in jeopardy. Service station proprietors in these six centres have imposed a complete shut-off of petrol supplies for varying periods, an action which may be held to contravene the i Motor Spirits Distribution • Act (1953), and could conceivably result in the revocation of licences. But whatever the degree of ‘resistance, and it is greatest | in Christchurch, ail of the l petrol resellers are adamant [that something must be done to restore their profit margins. Dry week-ends Under the influence of two increases in the price of petrol, these margins have dropped from 10.9 per cent to 7.7 per cent in the last three months. For most of the time turn-over has been reduced by the Government-imposed restrictions on petrol sales after mid-day on Saturday until 6 a.m. on Monday. Compounding these difficulties are the 2.7 per cent general wage adjustment in February, and yesterday’s 9 per cent general wage, order, to come into effect in July. The strongest reaction has come from the Canterbury branch of the R.T.M.A., which has recommended to its members a complete ban on petrol sales “until a satisfactory increase in the profit margin is made to retailers.” This might mean no petrol sales in Christchurch for weeks, unless individual service stations renege on their association’s ban. The Canterbury branch extends its area from Kaikoura in the north to a point about midwav between Dun-

isandel and Rakaia in the i i south, and it is to the south I that Christchurch motorists: might turn for petrol. Telegram Petrol will still be sold in i Ashburton between 8 a.m. land 5 p.m. five days a week,; ino more and no less than is; ; required by the resellers'; llicences, according to the I jpresident of the Ashburton: 'branch of the association (Mr !N. Thompson). His branch, in j common with almost every ! other in the country that met fi yesterday, sent a telegram of f| con demnation of the latest /price increase to the Minister f!of Trade and Industry (Mr ; Freer). y. According to the Press Association. Gisborne motorlists will also be hard hit. 'The Gisborne branch has also imposed a complete ban on petrol sales but, unlike the ' Christchurch ban, there is a time limit —at 7 a.m. on Tues- ; day the Gisborne pumps will ! re-open. ! In all other areas where a i ban has been imposed on ■sales at times normally re- ! quired by licence, it applies !! only to Saturday morning and I public holiday trading. ! “Public holidays,” will in-j elude Anzac Day, and at least I four Dunedin service stations will close for six days from) 1 Anzac Day to register their protest. The anger of the petrol re-, 1 sellers, at least in Christ-’

[church, was further increased, by a statement by Mr Freer yesterday afternoon. According to the Press; I Association, Mr Freer said ithe Government would con- ! sider a review of petrol resellers’ margins when the details of the financial effects [of restrictions on their hours I were known. Retail margins on motor tispirit had not been adjusted I II simultaneously with the •■latest, price increase, but 1 tithese would be considered separately, he was quoted as 1 Qj/jrrfrrn—-r t t : r r s J 1 1 i ' I 1 i

: saying in a letter to tie R.M.T A "We will also give con sideration to those forms • relief which >Olll associate may consider appropriate f< stations seriously affected I week-end restrictions," tl telegram aid I But this, according to tl IChristchutch branch of 1 association. ignores 1' Imajor criticism that pro (margins are more aiiectid ! lhe price increases ard wa Irises than b\ rhe shorten 1 hours.