Petrol up 9.6c; gallon now costs 78.6c

Press, Volume CXV, Issue 33778, 26 February 1975, Page 1

Petrol up 9.6c; gallon now costs 78.6c

The retail price of premium grade petrol increased by 2.1 cents a> litre at midnight, making the price 17.3 cents a litre, the Minister of Trade and Industry (Mr Freer) announced last night.

This increase is equivalent to 9.6 c a gallon, bringing the price to 78.6 c a gallon, the Press Association reports.

The price increase for regular grade petrol is 1.9 c a litre, or 8.6 c a gallon, making it 16.4 c a litre.

Mr Freer said that as fuel was now sold by the litre prices had been fixed on that basis.

The price of diesel sold in small quantities from retailers* pumos will increase by 0.7 c a litre (3.4 c a gallon), while diesel bought in Quantities of more than 200 litres will be increased by a lesser amount. The Drice of light and heaw fuel oils will rise 1.6 c a litre (7.2 c a gallon). Mr Freer said the objective In fixing the prices was to minimise the frequency of price changes. "Increased costs justified an adjustment in prices late last year,” he said. “But the Government decided at the time to hold prices over the summer holiday period, in the interests of the private motorist. “However, an adjustment must now be made to retail prices to ensure the balancing of the petrol pool account. New margins “Adjustments have also been made to the margins allowed to petrol retailers to compensate for increased costs which have occurred since the last retail price change in May, 1974.” Mr Freer said the Government had decided on the price increase for motor spirits, and the Price Tribunal had decided on the increase for diesel and fuel oils. He said the new price of 17.3 c a litre for premium grade petrol remained one of the lowest in the Western world.

Motorists in Great Britain and West Germany paid about 26.9 c a litre, and in

Italy the price was 33.4 c a litre. Tax unchanged Tonight’s increase affects only the base price of motor spirits, and not the Government’s share through tax.

The tax share can only be increased by Parliament, which will not resume until March 25.

The retailer’s margin is built in to the basic price of 16.64 c a litre, and the other 0.66 c goes to local authorities in petroleum tax. Regulations providing for the increase were published tonight, and were gazetted in a supplement to the Gazette of last Thursday.