PRICE OF PETROL

Northland Age, Volume II, Issue 35, 3 September 1930, Page 6

PRICE OF PETROL

REDUCTION ANNOUNCED PENNY AjJALLON LESS Only one penny of the twopence increase in the petrol tax will be passed on to the public, according to a statement made by the Acting Prime Minister, the Hon. E. ARansom, in the House of Representatives to-day. Mr, Ransom said he had jnst received advice of the proposed reduction from the companies which import bulk petrol into New Zealand. He thought that the House and the country generally would be pleased to know that only one penny of the extra tax would be passed on to the public, instead of twopence which the consumer had been been bearing since the Government agreed to reduce the increse from threepence to twopence.

Mr. J. Linklater (Reform — Manawatu): How long will it last ?

Mr. J. A. Young (Reform— Hamilton): The companies have been fighting themselves over the price, The Minister said he did not know how long the lower price was to operate. 1

It is understood that the proposal to reduce the price of motor spirit has been under consideration by the importers for more than a week. When the Government imposed the additional ,tax

of threepence a gallon the ci m- ™ panies announced that they would bear one penny themselves and pass the other twopence on. However, since the Governm nt ■ agreed, after pressure had been brought to bear upon it, to reduce the increased tax to twopence, the whole of the extra imposition has been borne by the consumer. Represantations were made to the wholesalers from various quarters, with the result that they agreed to look into the question, and during the past week they have all been in touch with their American headquarters. The decision to continue to bear one penny of the tax was made several days ago.

The main importing companies ot bulk motor spirit have decided that the prices ot the brands of motor spirit imported by the Shell Vacuum, Atlantic, Union, Texas and “Big Tree” companies, in all grades, shall be reduced by one pennv a gallon, both on bulk and cases, as from to-morrow.