PRICE OF PETROL

Otago Daily Times, Issue 27385, 10 May 1950, Page 6

PRICE OF PETROL

Increase Expected RESULT OF DEVALUATION Rumours which have been circulating in Dunedin in the past few weeks to the effect that the price of petrol is to be increased by from 3d to 4d a gallon were strengthened by the Prime Minister’s announcement at the week-end of increased prices for other commodities. Substantiation of the fact that an increase in the price of petrol is expected was given to the Daily Times by members of the oil fuel trade in Dunedin yesterday when they sdid that such a move had been in the air since the devaluation of the pound, but there was no indication when the increase would actually come into effect. The Daily Times was told that the retail price of petrol in New Zealand had not altered from 2s 8d a gallon since devaluation took place, although increased prices in Great Britain, South Africa and Australia had resulted from the change in the currency basis. The trade fully expected that prices in New Zealand would have been brought into line at any time. It was pointed out that a price increase in New Zealand became almost inevitable when increases were authorised in other parts of the Commonwealth. There could, in effect, be only one world price for petrol, and the sterling area could not sell it more cheaply than the dollar area because all the petrol produced in the sterling area would be bought up by the dollar area. Traders said that if a new price for petrol were authorised in New Zealand, and. all the signs.pointed to this, the price of other petroleum products, including lubricating oils, was likely to increase. Others suggested to the Daily Times that petrol rationing might be lifted to coincide with the increase in price. They said that they believed that after the initial rush for supplies had gone,, the normal supply to the Dominion would be adequate to meet normal demands by users. An increase in price would also tend to reduce the quantity of petrol and oil used in this country.