PETROL REDUCED 2d A GALLON

Gisborne Herald, Volume LXXIII, Issue 21935, 1 February 1946, Page 2

PETROL REDUCED 2d A GALLON

DEARER TYRES

INCREASED COSTS

SURCHARGE PAYABLE

OFFSETTING EXPENSES (P.A.) WELLINGTON, Feb. 1. Changes will be effected from to-day in the price of petrol, truck tyres, and car tyres. . Petrol will be reduced by 2d a gallon throughout the Dominion, while tyres will be increased by a ?■§ per cent surcharge on truck sizes, and 15| per cent on car sizes. This was announced by the Minister of Industries and Commerce, Mr. D. G. Sullivan, last night. Reduced War Risk Charges “I am glad to be able to announce that reduced costs in landing motor spirits enables both the wholesale and the retail price of motor spirits throughout the Dominion to be reduced by 2d as from February 1,” said the Minister. “This is made possible by the reduction in war risk and other charges. “Unfortunately, a further revision of the selling prices of tyres and tubes has been forced on us, because of two recent increases in the overseas cost of these items,” continued Mr. Sullivan. “Both of these increases have come into operation since the date of the last review, in accordance with which reduced prices were authorised as from September 24, 1945, “The prices of tyres and tubes in Australia became subject to a general increase of 5 per cent, as from October 1, 1945, and subsequently the Australian Government also removed the subsidy on ail tyres and lubes exported by Australia to this Dominion.

These increases have affected the cost of all purchases and, consequently, must now be reflected in local prices. “As from February 1. 1946, the New Zealand retail prices will be increased by an addition to the present authorised list prices of a surcharge of 73 per cent, for truck sizes, and 15i per cent for car sizes. Within a fortnight new’ price lists -pH be avaiable, and these will incorporate the surcharges. Traders' unit margins remain unaltered.” Stabilisation Measure The Minister added that as part ot the Government's stabilisation programme related to transport costs, items such as motor spirits and truck tyres, among others, had been held to price's ruling at December 15, 1942. The general increase in award rates which were granted last year was. however, passed on to transport freight schedules. which were increased by 5 per cent, in urban areas and 4 per cent, in rural areas. “It had now been decided that the tyre price increases ,should be offset as far as practicable by a reduction in petrol prices, and the Stabilisation Commission would be immediately examining the net result of the two price alterations on transport freight schedules.”