PETROL PRICES

Evening Star, Issue 21569, 15 November 1933, Page 7

PETROL PRICES

ELIMINATION WAR ALLEGED (FROM OoR PaRLIAUCNTARV REPORTER.] WELLINGTON. November 1!. Requesting that minimum prices for petrol be fixed by Order in Council to prevent unfair competition, three petitions—from the Associated Motorists’ Petrol Company Ltd., the New Zealand Farmers’ Lilian, and the South Island Motor Union—were presented to the House to-dav by Air J, Linklatcr.

The jetitions stale that prior to the incorporation of the Associated Motorists’ Petrol Company five major oil companies operated in and controlled the New Zealand market for petrol. When the Associated Company was formed it offered petrol at a penny to twopence below the prices charged by the major companies. The immediate effect was to bring down the price of the major companies’ petrol lo that ot the Associated Company, but after that the major companies embarked on a policy of steadily reducing prices. Now. according to the petition, the major companies are selling at much below what they themselves have previously shown in statements to be the price at which they can profitably sell, and the ruling prices at the moment are such that neither the major companies nor the Associated Motorists can carry on without capital losses. The allegation is made that the object of the price cutting on the part ol the major companies is the elimination from the market of the Associated Company with loss to its 9.000 shareholders. who have subscribed £12.3,000 in capital. It is also asserted that it the major com'panics succeed in eliminating the • Associated Company they will again raise their petrol prices, and that, on the other hand, the continuation of the operations of the Associated Company will enable it to apply on an economic basis a check to the high prices of the major companies.