N.Z. PETROL COMPANY

Hawera Star, Volume LI, 11 June 1932, Page 4

N.Z. PETROL COMPANY

NEW SOURCE OF SUPPLY In an interview with Mr W. O’Gallaghaai, a director of the Associated Motorists’ Petrol Co., Ltd., the “Hawera Star’ ’ has been informed that a contract has been entered into between the Associated Motorists’ Petrol 00., Ltd., and Messrs Russian Oil Products Ltd., London, a British company registered in England, which contract grants to the New Zealand company an exclusive monopoly (for a period of seven years) for the importation, distribution and sale of Russian petrol, lubricating oils and kerosene. Russia is now the second, largest oil producing country in the world, her production being exceeded only by the C.S.A. Russian oils are distributed in many of the important markets of the world, the principal ones being England, Italy, France, South Africa, Germany, Spain, Belgium, and all the principal Asiatic countries. The French and Italian Navies, the Spanish Monopoly and other large State departments, as well as important shipping companies, are also all big users. England is said to be the largest user of Russian petrols. From the economic standpoint, Mr o’Callaghan said, there was much that New Zealand could gain as a- result of the agreement entered into by his company. Russia was a tremendous market for raw materials —wool, tallow and hides are among her principal imports. A country could only purchase by establishing credits, and the importation of 1 Russian oil to New Zealand opened the door to valuable reciprocal trade, and it was anticipated that Russia would .become an important customer for New Zealand raw material. Moreover the entire profits of Ms company would remain in New Zealand. There was also the material consideration that the company would contribute a considerable sum to the public revenue in the form of income tax.

Already a large number of garages and petrol stations have been linked up to distribute the products of the company, which is now in the process of erecting its bulk installations, and immediately these are. completed the first tanker will be ©n route, so that within the next few months the company will be in full swing and the petrol available.