COMMERCIAL Ampol seeks higher prices for fuels

Press, Volume CXV, Issue 33774, 21 February 1975, Page 16

COMMERCIAL Ampol seeks higher prices for fuels

j ** (N Z.P A Reuier—Copyright) ' • SYDNEY. Ampol Petroleum, Ltd, has applied to the Australian Prices j Justification Tribunal for an increase of 9c a gallon on the wholesale price nf nptrnl si nd nth Ar ■flip I

Ampol was applying in advance for the rise to reim\burse it for the cost of Middle East crude oil. which it would have to begin importing from April, the chairman (Mr W. M. Leonard) said.

If Ampol did not get the price rise it would not import the crude oil, and this Would lead to petrol shortage in Queensland, he said. The price of the imported

[crude from April I until the (end of the year would be about S27m. and Ampol was I not prepared to spend that I unless the Prices Tribunal [granted an increase in advance.

“We are not going to im port to go broke,” Mr Leon ard said.

The price increase would push up the cost of a gallon of super-grade petrol 11.3 per cent, from 63.3 c to 72.3 c.

. The hearing of the application. in public, will start on March 11.

Ampol expected the tribunal to grant the increase requested so that the shortages need not arise. A public hearing by an- | other producer, Cal tex, for a price rise of 6c a gallon has already been heard by the tribunal, but no decision has been announced yet. Ampol had been pressing for a continuation of the allocation of locally produced oil to allow it to refine, and distribute only indigenous crude oil, as it has done since September, 1972, but about two weeks ago the Government said that the allocation [would not be continued. Under the new allocation, Ampol will have to import about 30 per cent of its needs.

Ampol recently reached iagreement with Kuwait for [the supply of the crude oil I for about four times the price lof indigenous crude oil. Mr Leonard said that the price rise of the Middle East oil had so far escaped Australia, but it would soon have an increasing inflationary effect on the Australian economy.

Of the 9c a gallon requested by Ampol, a little less than 7c represents the cost of bringing the imported

crude dll to Australia, and about 2c extra costs already, incurred, including increased overheads. The remainder would make a slight improvement in the return on shareholders’ funds, which stood at about 74 per cent.