2d A GALLON

Otago Daily Times, Issue 27387, 12 May 1950, Page 4

2d A GALLON

Price Of Petrol RISE ANNOUNCED PA WELLINGTON, May 11. The price of petrol has been Increased by 2d a gallon as from tomorrow according to a notice in today’s Gazette. Commenting on this increase, the Minister of Industries and Commerce, Mr Bowden, said petrol prices had been reviewed on the same basis as had .applied for a number of years, which was to ascertain the average landed cost in New Zealand of petrol imported by all companies and add the necessary margin for expenses of sale and distribution. The principal factor which made the increase necessary, the Minister continued, was the devaluation of sterling, but New Zealand motorists had been more fortunate than motorists in other parts of the Commonwealth for they had been spared an increase for a longer period than in Britain, Australia and South Africa, where heavier increases were made some months ago. New Zealand also had-now to face an increase, but it was fortunate that lately there had been a slight fall in the dollar equivalent of world prices for motor spirit which had, to some degree, offset the increase occasioned by devaluation of the pound sterling, so that the adjustment now necessary was less than appeared to be inevitable a little time ago. It should be stressed, Mr Bowden added, that the present increase in the price of petrol was entirely unrelated to the removal of subsidies.