PETROL PRICES UP.

New Zealand Herald, Volume LXV, Issue 19838, 7 January 1928, Page 8

PETROL PRICES UP.

FOUBPENCE A GALLON. INCREASE OPERATES TO-DAY* EFFECT OF THE NEW TAX. MORE REVENUE > FOR ROADS. After many false alarms which sent the motorist rushing to the petrol-pump, the tax of 4d will be imposed this morning when the garages open for business, and first-grade spirits will retail at 2s Id a gallon, instead of Is 9d. The bare tax is being passed on by the bulk distributor to the re-seller, who will, in torn, charge the consumer 4d without any of the • extravagant extras which were rumoured.

Whispers that the increase was coming to-day were heard in Auckland yesterday, but th« rumour circulated too slowly to produce any noticeable rush for supplies. In Wellington the hints were less nebulous and late in the' afternoon there was a marked rush for fuel and the universal request for brimfid tank 3. The Motor Spirits Taxation Bill was introduced into Parliament on November 8 and was passed three days later, after a division of 39 to 19, on on unsuccessful amendment thai the levy should be 2d a gallon, instead of 4d.

The bulk importers of motor spirits have been taxed for all supplies which were not on the water before November 9, and several cargoes subject to the tax have already been lodged in bulk. The small importers will welcome the imposition, as it has been feared by them that the companies with large reserves would hold out for two or three months. This would have compelled small bulk distributors of cased spirits to sell at the old rate petrol upon which they had paid tax. Mr. G. W. Spragg, chairman of the petrol committee of the Motor Trade Association, gave an assurance last evening that the retail prico Would contain no additional charges. Second-grade petrol would be subject to the same increase and would now sell from the pumps at Is lid instead of Is 7cL The petrol. tax is expected to yield a national revenue of £720,000 a year, after allowance is made for non-motor usage. Petrol imports into the Dominion for the 11 months ended November 30 last exceeded 43,500,000 gallons.