Petrol price goes up again

Press, 5 August 1980, Page 1

Petrol price goes up again

PA Wellington The price- of premiumgrade petrol rose 2c to 54c a litre from midnight yesterday and standard-grade petrol rose L.sc: .to 52c a litre, . The price of automotive diesel rose 4.2 c to 38.8 c a litre for retail sales and 37.8 c for bulk sales. . The price of fuel oils rose 2.4 c to 27.4 c a litre for light oil and 1.4 c to 25.9 c a litre for heavy oil. .; < • ; The Minister of Energy (Mrs Birch); said the increases partly; reflected the increased cost of imported crude oil. The biggest increase had been applied to automotive ; diesel because the price recently had not covered ,-. the costs of supply. / , ?• ■ . ; '

The new prices also took into account applications from_ petrol' retailers and the/ oil companies for increased margins, to cover higher running costs. The Government would build up a- $25 million' surplus in the pool accounts , by March, .1981, for review, in mid-1982, and would in-

crease the oil industry’s allowable rate of return on assets before deducting tax and interest from 11.5 per cent to 13 per cent. “This new rate of return, ' while short of the 13.5 to 15 per cent' recommended in 1976 by the commission of inquiry into the distribution of motor spirits and ancillary products, does bring - the- oil industry’s profit - position more into line with other , pricecontrolled industries,” said Mr Birch. . A member of the council of the Road Transport Association, -Mr N. S. Bidwell, said carriers ‘ already had an application pend- ; ing for an increase in '•cartage rates. The' new fuel prices and the 4 pier cent general wage rise meant they would have to apply for a further increased -. . ’ / ’,; _ “We. are just pricing ourselves out of the market,” said Mr Bidwell. . The. president of the Motor. Trade Association, Mr. P. ; Buist, said that the down-turn in petrol sales

in recent months would be accelerated by the price increases. Many petrol retailers faced liquidity problems.

A relaxation of the ban on selling petrol on Saturday afternoons and Sundays would get a mixed response. Many members of the association would be reluctant to open for longer hours at the weekend.