PRICE OF PETROL

Nelson Evening Mail, Volume LXXI, 28 April 1937, Page 8

PRICE OF PETROL

INCREASED Id A GALLON EXPLANATION BY MINISTER FULL AND CAREFUL INQUIRY Limited Press Association] CHRISTCHURCH, 2Gth April. An increase of one penny a gallon in the price of petrol in areas where price fixation schemes are operative was announced by the Minister of Industries and Commerce (the Hon. D. G. Sullivan) to-day. The increase has , been made at the request of the wholesalers and will apply to North Canterbury, Wellington, and Manawatu, the new price bringing these areas into line with those where there is no fixation. A Gazette notice announcing the new price was issued to-night and the higher prices will become operative from the date of issue. According to advice from an official of the Industries and Commerce Department received this evening from Wellington, m the North Canterbury area the increased prices will be: For super grade, 2s; for ordinary standard, Is lid, with commensurate differentials in certain districts as laid down by the previous fixation regulations. “INCREASE JUSTIFIABLE” “I wish it.to be understood,” said Mr Sullivan, “that this increase was justifiable after a full and careful inquiry has been made into all the circumstances. The increase is necessitated by circumstances entirely beyond the control of the Government, as it has been found upon investigation that overseas prices of petrol had shown a steady increase during the last several months and that tanker freight rates had shown a marked advance. The increase is in no way attributable to the conditions within the Dominion, but the rise in prices which will take place is attributable to the external factors to which I have referred.

“The Government, in allowing this increase, has been guided by the provision contained in section 5 (1) 1 of the provision contained in section 5 (1) of the Motor Spirits (Regulation of Prices) Act, 1933, which states: ‘ln fixing maximum prices or minimum prices in accordance with the foregoing provisions of this Act, regard shall be had to all such considerations as the Gov-ernor-General in Council thinks proper, including fair market values of motor spirits in the several countries of origin or in other countries from which motor spirits are commonly imported into New Zealand, and also fair and reasonable costs of importation (including any duties of Customs or other charges levied on importation into New Zealand) and fair and reasonable costs of insurance, storage, sale, and distribution.’

“The oil companies applied increases in respect of areas not controlled by the regulations several months ago. The present regulations bring controlled areas into line.

“In regard to Wellington the new regulations provide for the Upper Hutt area to be included in the Wellington free delivery area, and prices will now i the same in these two districts. This will overcome the difficulties with which Upper Hutt resellers of petrol were faced during recent months owing to the discrepancies between Upper Hutt prices and Wellington prices.

“The Government’s policy of State fixation of petrol prices has'been of great benefit to all those engaged in its retail distribution and to those employed in that industry. Moreover, prices charged in New Zealand to the general public compared with those charged in Australia indicate that consumers generally in the Dominion are better off than those in the Commonwealth after adjustments are met in the rates of duties charged in both countries (New Zealand 10£<d, Australia 7id). As far as New Zealand prices are concerned the Government policy has been of greater benefit than if the market had been left unregulated and the whole scheme, which has functioned remarkably well, is very necessary as a means of protection for the