PRICE OF PETROL

New Zealand Herald, Volume LXXVI, Issue 23504, 15 November 1939, Page 13

PRICE OF PETROL

RISE OF dD RUMOURED DENIAL BY MINISTER NO FOUNDATION FOR STORY [BY TELEGRAPH —PRESS ASSOCIATION] CHRISTCHURCH, Tuesday Rumours that another heavy increase in the price of petrol is to be made with tho lifting of restrictions next month lias been current in the last few days, but the Minister of Industries and Commerce, the Hon. D. G. Sullivan, declares that these rumours are absolutely without foundation.

A correspondent in a letter to the Tress asked if there was any truth in a rumour that a further increase of 4d a gallon was to made on December 1, and declared that if this was correct the authorities should announce their intention at once in order to allow motorists to budget for Christmas holidays and tours. The Minister replied that there was absolutely no foundation whatsoever for such a statement.

"The question of the price of motor spirit is one that has been the subject of examination by my department ever since this Government took office, and under the regulations fixing the price it has always been necessary to obtain Government sanction before a move can he made," said the Minister, "and in every case, whether the movement is upward or downward, the matter lias been subjected to the most careful examination. Advices in connection with prices generally are received weekly by my department, and while at the moment there has been a slight hardening and an increase in tanker freight rates and war risk insurances, oil companies are still selling from stock which arrived at the low price. The recent increase of Id was due to exchange iluctuation entirely, and as oil companies remit on sales made, such illcrease proved to be warranted. "As 1 have indicated from time to time in connection with prices generally, if a case exists for an increase this wiil bo thoroughly investigated, and if found necessary, the appropriate authority will be given. You may rest assured, however, that there is no suggestion whatsoever that prices will rise to the extent of 4d a gallon as from December 1 next, and that before any additional price advances are made the fullest possible examination of the whole position will be made."