PRICE OF PETROL

Otago Daily Times, Issue 24656, 11 July 1941, Page 4

PRICE OF PETROL

INCREASED BY A PENNY OPERATIVE FROM TO-DAY (P.A.) . WELLINGTON, July 10. An increase of a penny a gallon in the price of petrol (making it 2s 6Jd a gallon in Dunedin) will come into force to-morrow. Advances in overseas prices and freight rates are responsible for a halfpenny of the increase, and the other halfpenny is to recoup the oil companies for the cost of certain essential war protection for the storage tanks. Discussing the first halfpenny, the Minister of Supply, Mr D. G. Sullivan, said to-night: “As I have indicated from time to time in the press, the price of petrol is being constantly watched, and advices are received each week from overseas as to price movements. All documents in respect to supplies landed in this country are examined and the prices of stocks in the country is determined each week. At the point where there is a movement of price either upwards or downwards to the extent of id a gallon the appropriate amendment to the regulations is introduced. This further increase is in respect to conditions over which the Government has no control, and is dependent on overseas costs, but the public may be assured that everything possible is being done to keep the price to as reasonable a level as possible.

“ The other halfpenny,” the Minister said, “ is to recoup the oil companies for the cost of effecting certain essential war protection for the oil storage tanks. This very necessary work and the method of pavment for it have been authorised by the War Cabinet. The public will readily realise that the protection of our oil storage tanks is a vital necessity to the whole community. I may state, however, that it is anticipated that the necessary cost involved

will have been recouped within four or five months, that is. on a basis of the present monthly sales, and as soon as the cost has been recovered the Government will take this into account in considering the general price movement of motor spirits.”