PETROL PRICES

Otago Daily Times, Issue 21978, 13 June 1933, Page 10

PETROL PRICES

REDUCTIONS IN AUSTRALIA four in four months. (From Our Own Correspondent.) SYDNEY, June 1. It is believed that something in the nature of a petrol price war -is in progress in Australia. Whatever' may be behind it motorists hailed with delight this week the fourth cut .in as many months. It is regarded as significant that the latest cut brought the price Id a gallon below that charged by an independent oil company which recently commenced operations in Australia. The price of first grade petrol is now Is 8d a, gallon, as against 33 Id in February, 1923. In January, 1931, the price was 2c. Id and in April of the same year it rose to 2s 2d , Since then, however, there has been a gradual fall to the present figure. In February this year the price was Islldj in March it was reduced to Is 10dL » April to Is 9d, and now it is Is Bd. This vear the Federal Government has displayed unusual interest in the operations of the big oil companies and although hindered in its attempts to hold an inquiry, has determined upon a Royal Com mission, with . full, powers. This will ‘necessitate legislation. . • „ ifOn behalf of the majo V companies, it has been stated that the cut in prices m Australia is due to world-wide fluctuations in the price of petrol. It is said that on May 16 there was a drop in Great Britain of 2Jd., There, was an oversupply of petrol in America, and in most countries motorists were garaging their cars because of the depression.. Australia was merely moving in conformity with the rest of the world, Oil was a primary produet, and, like all other primary products it had decreased in price. The lower price would be maintained until the oitncult times had passed. . The reduction which became operative in Australia hact no local significance. . . , The independent company immediately fell into line with the major companies, and reduced its petrol Id a gallon. A director of this company expressed the opinion that the cuts were temporary only. He claimed that an examination ot the prices for which petrol could be obtained overseas immediately disposed ot the argument that factors outside the Commonwealth were solely responsible for the fall in prices. Recent reductions he maintained, exceeded in the aggregate tne price for which petrol could be bought on the other side of the world. There has been some talk of an attempt to stabilise petrol prices “ in the interests of motorists,” and any announcements along these lines will be awaited with interest. The motorist is convinced that he is being well “ protected ” at present, and will welcome a continuation of the price war ” if such it be. If the oil companies are merely conscience-stricken, well, the motorist docs not object to that either.