PETROL PRICES

Grey River Argus, 29 November 1937, Page 8

PETROL PRICES

Causes of Increase •

. FREIGHT RATES DOUBLED.

[Per Press Association.]

AUCKLAND, November 27.

The general advance in the price of petrol in many parts of the world was the subject of comment by Mr Percy du Mar, marketing executive in Australia for the Atlantic Union Oil Company, who passed through Auckland on the “Monterey.’ He said that the advance of from a penny to twopence a gallon was inevitable and caused by higher labour costs, industrial difficulties and increased freight rates.

“All costs have risen enormously in the production and distribution of petrol,” he said. “Freight rates have more than doubled, and where companies were paying only 14s on petrol shipped to New Zealand in February they are now required to find from 27s to 325. This increase has had a very material effect on the ultimate price that tne consumei - must pay.”

The difficulties had been accentuated by the industrial troubles in the United States, and with a shortage in refinery production companies had been unable to keep pace with the demand. More and more new cars were being put into service each week and it had been found difficult to cope with tne increasing requirements. Wholesale prices of gasoline in the Gulf of Mexico had gone up very considerably, and in the United States there nad been an advance in retail rates of from Id to 2d a gallon.

Mr du Mar said he was unable to state whether furthex - increases coxuu be expected. He pointed out, however, that costs, notably in the United States, and taxation were still mounting; and it was only natural that these advances, if they were large, would have to be passed on.