PRICE OF PETROL

Otago Daily Times, Issue 23362, 30 November 1937, Page 7

PRICE OF PETROL

RISE IN UNCONTROLLED AREAS EFFECT OF INCREASED COSTS THE GOVERNMENT'S POLICY (From Our Parliamentary Reporter) WELLINGTON, Nov. 29. The action of oil companies in increasing the price of petrol by Id per gallon in the Auckland district without previous notification was referred to by Mr W. J. Broadfoot (Opposition, Waitomo) in an urgent question which he asked the Minister of Industries and Commerce (Mr D. G. Sullivan) in the House of Representatives to-day. He asked if it were still competent for the oil companies to increase prices and, if so. when was it proposed to give universal application to the Government's policy of price fixation for the distribution and resale of petrol? "It is still possible for oil companies to increase the price of petrol in those area* where the Government has not taken action to fix the price of petrol," the Minister said in reply. " I understand that the oil companies have increased the price by Id per gallon in all uncontrolled areas. The policy of the Government is to bring about price fixation for the distribution and resale of petrol throughout the country and prices have already been fixed in a number of areas. Investigations are at present proceeding in other areas with a view of extending price fixation to those localities."

Referring to the present increase, the Minister said he understood that the oil companies felt it was justified because of their increased costs, due to increases in the f.o.b. prices and tanker rates. The oil companies had asked permission to make an increase of Id per gallon in the wholesale price in the controlled areas and that matter was now receiving the consideration of the Government.