MOTOR FUEL.

Colonist, Volume LXII, Issue 15317, 4 March 1920, Page 5

MOTOR FUEL.

DEMAND OUTSTRIPPING SUPPLY,

POWER ALCOHOL'AS SOLUTION

OF PROBLEM

(Australian and N.Z. Cable Association}

London, March 1. The report.of the Profiteering Subcommittee on the nrice of motor fuel declares that the present high^ prices J are due to the demand outstripping the supply, and also to powerful financial interests taking advantage of this pc* sition to raise prices. The report states that the average cost- of production of petrol should not exceed 150s per ton. Therefore it maintains tha^ the price of 480s. reveals a grossly excessive profit. The sub-committee recommends that the whole question of the production price, and distribution of motor fuel'should engage the attention of the League of Nations, or be made a subject of international agreement. The report strongly emphasises on: the Government that on the expiry m 1920 of the existing contracts binding the Anglo-Persian Oil Company, in which the Government has a controlling interest, steps should be taken to ensure a reasonable price to Britain, irrespective of other countries. Referring to the cost of transport, the report: points out that the rate between North Atlantic ports and the United Kingdom before the war was 18s a ton, and is now 2205; from the Persian Gulf it was 365, and is nov? 200s; and from Borneo it was o6s, and is now 410s. . . The committee expresses the opinion that a fair average rate should not exceed 100s. even from Gulf ports, and recommends fixing the retail price oi No. 1 petrol at 3M&. The report describes the ■ situation _as alarming, and -is strongly of opinion that the ultimate solution is the production of homo or Empire produced power alcohol. Tt recommends that the production and distribution of power aWhol bo under Government control. The sub-committpe also suggests that a tnx on motor fuel would bo more equitable than a.- tax on motor cars.