PRICE OF PETROL IN GREAT BRITAIN

Manawatu Times, Volume LIV, Issue 6865, 21 March 1929, Page 7

PRICE OF PETROL IN GREAT BRITAIN

Soviet Kept it Down COMPANIES EXPLAIN THE RECENT RISE United Press Association —By Electric Telegraph—Cdpyright. Received Wednesday, 10.20 p.m. LONDON, March 19. Replying to Premier Baldwin’s invitation to explain the increase in the price of petrol the Anglo-American, Anglo-Persian, Shell and Mcx companies point out that despite the increase and allowing for duty tho retail price is now lower in London than at arv time for tho last ten years except between April, 1927 and February, 1929 when tho companies were engaged in a price war with tho Soviet petrol which sold below tho level of world prices. The termination of the price war in February enabled a return to world prices which are essential to the maintenance of supplies in Britain. The companies explain that the Mexican guif is the centre of gravity of the petroleum trade. Its prices are the basis of world values and 70 per cent of Britain’s motor spirit is drawn therefrom. The companies show that commercial spirit forming the major portion of the trade realises Is lid per gallon in London wholesale, but the total cost delivered is Is 2d. The companies add: “Not unnaturally the price of No.l spirit which private car owners use i 3 commonly the subject of criticism which is invalid because it consists of a blend of various spirits and consequently cannot be compared with Gulf prices. The retail prico of both No. 1 and commercial spirit, including duty, is two pence below what it was in 1914 owing to a reduction in costs of distribution.”