PETROL 8D. A GALLON

New Zealand Times, Volume L, Issue 11654, 19 October 1923, Page 6

PETROL BD. A GALLON

FURTHER REDUCTION IN U.S. CONSUMERS BENEFIT BY CUTRATE AVAR. OVER- PR 01 > U C'TION AT LEG ED. Gy Telegraph.—Press Assn. —Copyright. Australian and N.Z. Cable Association. (Received October 18, 7.45 p.m.) NEW YORK. October 13. Six companies,- including the Standard Oil, announced here a reduction of 2 cents a gallon in the price of petrol, to bo effective in 27 States, bringing the retail price to between lnj and 13 cents per gallon throughout the country. ’Phe reduction is* regarded is a further development in the price war, although the companies declare it is due to ovei-production. GOVERNORS’ THREAT. In ten of the Middle Western States petrol was sold at 16 cents a gallon last August-, as tho result of a cut-rato war among the producers. i Tho situation arose from the action of ;the Governors in several States in ordering tho prico to be reasonably reduced ifrom 23 cents, otherwise the States | would establish their o.wn petrol sta- ; tions. | The Standard Oil Company immediately reduced its rates far below those at which the independent companies could afford to sell, yet must meet.