Petrol Price War

Manawatu Times, Volume LIV, Issue 7243, 24 August 1933, Page 4

Petrol Price War

ANOTHER PENNY REDUCTION. FIVEPENCE IN NINE MONTHS. SYDNEY, Aug. .17. Although only guarded references are made to the fact, it is more clear than ever now that a petrol prico war is in progress in Australia. At this stage it is difficult to say how long it will be before tho motorists are deprived of the benefits that are now coming their way. It is no mean benefit, cither, for it is estimated that with every fall of ono penny a gallon a motorist saves on tho averago £1 a year. There arc 200,000 motorists to bo considered. It is pointed out that tho current price of liigh-grado petrol in Sydney and Melbourne to-day is llid per gallon, plus duty and primage, 7id a gallon, and that this is the lowest prico at which the world's best petrol has even been sold in Australia. t Petrol prices in Australia have beon substantially reduced during the last two years. At ono timo within this short period the price for high-grade spirit was 2/3 a gallon. On November II last year tho prico was reduced from 2/- to 1/11 a. gallon. Further reductions of one penny a gallon were made on March 20, April 28 and May 29 of this year. This week's reduction makes tho fifth reduction of Id in nine months. In practically every instance the reductions have been announced first by tho major oil companies non operating in tho Commonwealth. The initiative has been taken, as a rule, ia Melbourne. Regarding the latest reduction, representatives of the independent companies say that they becamo aware of the intention of tho major companies to cut the price, but they got in first.

Naturally, motorists aro delighted with the turn of events, but they aro wondering where it is going to end. They fear that it will be a fight to a

finish, and that being so, it will mean tho annihilation of tho weaker concerns, giving the larger interests full control of tho market. Motorists say that, after that stage has been reached, tho companies still operating will seek to recoup their losses by readjusting prices on a higher scale. Perhaps prices would soar to a higher point than that reached in the past. Some restraining influence would bo essential, otherwise motorists would be worse off.

Already there is a report that a further reduction of a penny can be expected within a week, the independent companies being credited with tho latest move.

Tho new prices of petrol in Australia, operating from August 14, arc: First grade, Is 7d a gallon; second grado, 1/5 a gallon.