RUSSIAN PETROL

Evening Post, Volume 32, Issue 32, 6 August 1931, Page 8

RUSSIAN PETROL

AUSTRALIAN MOVE '

COMPANY MOOTED

Soveial prominent, butines's men "in Melbourne have lecently been' asked to paiticipatc in tho formation'of a company for the.salo'of Russian petrol in Australia •at prices far below 'those ruling''tor petiol now marketed in"1 tho Commonwealth, says tho Melbourne "Age." The pioposal was put forward by the representative of an American oil company in Sydney, and with him wore associated a Sydney solicitor and a b. '.mess man who has been connected ivitl the petiol business for a number c- yeais. Although the petrol is pro duced by the Russian Soviet Govornment, tho agency is held by a London concern, and it is with that agency that the Australian promoters are in touch. Indeed, it has been repiosented that one of 11 c promoters holds an option 'over a large quantity of petrol, and the men who 7i weie approached in Melbourne' v ere 7 asked, a," a preliminary, to provide a certain sum of money to send a representative to London- to tako up tho option and sign the contract., - Under the plan it was asseitod that Ku&sian petrol could be landed m Austialiq,(at slightly under 5d pci gallon, .which) 'after paying duty a'ud other chaiges,Vould bung the wholesale price up to Is a gallon. If it were retailed at Is Gd a gallon a bandiome margin of profit could bo made, and the price would be far below that of other petrol sold m Australia. It was proposed that 12,000,000 gallons should be imported in the first year, and although that does not represont a large proportion of AiiS; tralia's total consumption, 'yet its" sale would inevitably have a very maiked influence , on petrol prices generally, fbat profits would bo substantial is indicated by the fact that one man. who wa approached ■. was told that it would cost £80,000 to establish .the requisite distubuting plaut in Australia, but ,that that sum would: be .returned in profiti at tho end of the first year. Tho negotiations throughout havo been carried on in stuct secrecy,- and the piomotors aie unwilling, at the present stage to disclose', :heir plans. Hbwevei, as has been< pointed-'out, several well-known business nm>n, both in Melbourne arid in the'other capitals,, ha\o been asked to aid in the formation ot tho company. Some of them havo been greatly atti acted by the proposal, but have hesitated to 30m the organisation because of the tear 'that an embaigo might be placed on the importation of the Russian product.