CUTTING PETROL PRICES

Dominion, Volume 21, Issue 241, 12 July 1928, Page 10

CUTTING PETROL PRICES

CANTERBURY MOTORISTS • BENEFIT Dominion Special Service. Christchurch, July 11. A petrol price war is in progress in Christchurch, and retailers are chiefly affected. Prior to the action of the Canterbury Automobile Association in importing its own petrol under an arrangement with a company, certain petrol stations were operating at cut prices, and now that the C.A.A. petrol has arrived others are endeavouring to combat the reduction in price ade by the association, which has now become a unit in the price war. At least six service stations in Christchurch are now selling motor spirit, all claimed to be first grade, at Is. 10d- a gallon, and it is not unlikely that others will follow if they wish to survive against such competition. So far no action has been taken by the largest oil companies, although two retailers of their petrol acting on their own initiative, have lowered the price to Is. lOd. The Canterbury Automobile Association has three stations in operation, with others being arranged for. Reliance will be made chiefly on pumps for this first shipment. Most of the cases will go to the country: 2000 have been allotted already, and arrangements have been made for regular shipments. Disaster is predicted for many of the small petrol stations as the result of the war, and if the companies charge cash on delivery a good number will be unable to curry on. The big companies arc being asked to supply petrol at a price to compete with cheap grades now oh the market both in bulk, and case lots.