PETROL PRICE WAR

New Zealand Herald, Volume LXX, Issue 21576, 22 August 1933, Page 5

PETROL PRICE WAR

—■—— , ■ AUSTRALIAN BATES LOWER ..." I'V' • ANOTHER PENNY REDUCTION FIVEPENCE IN NINE MONTHS [FROM OUR ow\ correspondent] SYDNEY, August 17 Although only guarded references are made to the fact, it is more clear than ever now that a petrol price war is in progress in Australia-. At this stage it is difficult to say how long it will be before the motorists are deprived of. the benefits that are now coming their, way. It is no mean benefit, either, it is estimated that with every fall of one penny a gallon a motorist saves on the average £1 a year. There are. 200,000 motorists to bo considered. It is pointed out that the current price of high-grade petrol in Sydney and Mel-, bourne to-day is lljd per gallon, plus duty and primage, a gallon, and that this is the lowest price at which the world's best petrol has ever been sold in Australia. Petrol prices in Australia, have beeji • substantially reduced during the last two years. At one time within thi3 short period the price for high-grade spirit was 2s 3d a gallon. On November 11 last year the price was reduced from 2s to Is lid a gallon. Further reductions of one penny a gallon were x made on March 20, April 28 and May* 20 of this year. This week's reduction,, makes the fifth reduction of Id in nine months. In practically every instance the reductions have been announced first by the major oil companies now operating in the Commonwealth. The initiative Tias been taken, as a rule~ ; in Melbourne. Regarding the latest reduction, representatives of the indepen-. dent companies say that they became aware of the intention of the major companies to cut tho price, but they got in first.

Naturally, motorists aro delighted with the turn of events, but they are 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 the annihilation of the weaker cori-> cerns, giving the larger interests full \ control of the market. Motorists sajr U that, after that stage has- been reached, the 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 be 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 the latest move.

The new prices of petrol in Australia, operating from August 14, are: First grade, Is 7d a gallon; second:gradc, Is 5d a gallon.