PRICE OF PETROL.

Otago Daily Times, Issue 20704, 30 April 1929, Page 17

PRICE OF PETROL.

SHOCK TO THE MOTORING PUBLIC. RUSSIAN OIL JOINS COMBINE. (! rc.\i Oub Own Coriik.'-pospemt. . ■ LONDON, March 5. Serious dissatisfaction has been caused by the announcement of an increase in tlie price of petrol of 2^d. per gallon, xhis is th§ first increase in the price of petrol by firms within the combine since February, 1926. The announcement was made on the evening of the last day of February, and came into operation on the following morning. The announcement on behalf of the Anglo-American Oil Company was;— The distributors of the nationally distributed brands of petrol and National Benzol Mixture announce an increase in prices (both wholesale and of 2id per gallon, effective on L'liday morning, March I. Kerosene (or petroleum) is advanced Ud per gallon. The Power Petroleum Company, announcing a similar increase, stated that the prices for power petrol to-dav would bo Is 6Jd a gallon, and for No. 3 grade Is 4Ad, the provincial rates being $d above those figures. A broadcast message from Moscow stated that an agreement to last for three years had been signed between the AngloAmerican oil combine and the Russian Oil Products. The Russian Oil Products will be given an equal share of the British market with other companies. The agreement also provides for the supply of large quantities of Soviet kerosene, crude oil, and petrol to the companies entering the combine, which is led by the Royal Dutch Shell group. A DISCLAIMER. The Shell Oil Group has issued a disclaimer of the Moscow report. "They say: “ 1. The Russian Oil Products Company will not be given an equal share of the British market with other companies. “2. The agreement does not provide for the sale of Russian petrol or crude to any companies of the Royal Dutch-Shell group. “3. In so far as other products are concerned, the agreement does provide for compensation to the owners of the Russian oil properties inasmuch as, with full knowledge of the sellers, the price has been fixed purposely below the world market price so that this margin provides for compensation and will be used for that purpose.” It is also denied that the agreement provides for the sale of Russian petrol or crude to, any companies of the Royal Dutch-Shell combine. A GRIEVOUS SURPRISE. “It conies as a very nasty blow. I regard it as a most grievous surprise, and cannot apreciate any set of circumstances which justifies it.” This was the comment of Mr Stenson Cooke, secretary of the Automobile Association. “ The inersease,” he said, "practically means an additional charge of from £6,500,000 to £7,000,000 a year on the motoring community, and this on top of the very uncalledfor duty of 4d a gallon put ou petrol last April by the Chancellor of _ the Exchequer without any countervailing reduction in the horse-power tax, 'thick has cost the motorists over £13,000,000. “Unless the motor industry and the motoring community are relieved substantially in the forthcoming Budget, this latest imposition will mean that one of the most promising industries in the country will have to face' an additional handicap, which is bound to react unfavourably on employment.” COMPENSATION OF FORMER OWNERS. “On one very important point,” says the Financial Times, “ the Shell interpretation of the contract with the Russian Oil Products differs materially from that of the Moscow authorities. M. Sokohiikoff, president of the Naphtha Syndicate, has declared that the completion’ of the contract was rendered posisble by Sir Heuru Deterding’s abandonment of his previous demands for the compensation of former owners of Russian oilfields. Now we , are told, ou the authority of the. Shell group, that, so far as products other than petrol or. crude are concerned, the agreement does provide for compensation, since—'with the full knowledge; of the sellers,’ be it noted —the price has been fixed purposely below the world market price, so that this margin yields compensation and will be used for that purpose. We are left in the dark as to what this margin actually is, how far it will' go, and in what manner it will be allocated.among the owners of sequestrated oil properties, many of whom are still apprehensive that their interests have been lost sight of. It is a clear and imperative case for further information, and the sooner the Shell group decides to make a full disclosure of the agreement the better.”