PRICE OF PETROL

Timaru Herald, Volume CXLIII, Issue 20894, 25 November 1937, Page 6

PRICE OF PETROL

REDUCTION TO BE SOUGHT DIFFERENTIAL RATE An effort is to be made by the South Canterbury Chamber of Commerce to have the difference of lid a gallon in the price of petrol in Timaru and the main centres reduced by a half-penny by a decision reached by the Council of the Chamber last night. Mr W. I. Tait, on behalf of the Transport Committee, reported that South Canterbury paid Ud a gallon more than the main centres adjacent to bulk instaUations, the difference being caused by the railway charges on the spirit from the bulk instaUations to the Timaru depots. As far as the companies were concerned, it was understood that they sold at actuaUy Jd per gallon cheaper than, for instance, in Christchurch; in other words they carried Jd per gallon of the rail charges. The position would be altered if the oil companies had their bulk supplies in Timaru and replenished them from direct boats, but under th- present system of distribution, that course was evidently impracticable. Enormous Annual Cost

“It requires little imagination to realise the enormous annual cost to the South Canterbury district caused by the addition of lid per gallon on every gallon used, and it was a matter for regret that such a position does exist, when we are in such a favourable situation at a port,” said Mr Tait. “The Committee realises that there are some very convincing arguments In favour of the rates now charged, but the fact still remains that 1/3 of every pound spent on petrol in this wide area could be saved if it were not for the fact that all our petrol must of necessity be railed from Lyttelton. It has been suggested to the Committee that there is no real reason why the price of petrol should not be at a uniform rate throughout the Dominion as is the case with flour and bread, commodities which face the same localised conditions as do petrol.”

The excess charge of Hd a gallon on petrol in Timaru was causing some concern, said Mr G. H. Andrews. He knew it was due to the railway charges, but the Chamber had the assurance of the Minister that the anomalies would be removed in time. An example of the anomalies which existed was the charge made for the carriage of turpentine. In Ashburton he had learnt that the freight on a case of turpentine from Christchurch to Ashburton was 1/- while from Timaru it was 2/-. That was only one of the things which were acting adversely to Timaru. Mr J. M. Jenkins expressed disappointment that the committee had not made any recommendation in its report. Reduction Suggested Mr Tait said the report was worded with a view to bringing forth discussion. “We should not let the matter drop without making some effort to have our wishes gratified,” said Mr Andrews, suggesting that a move should be made to have the excess charge reduced to Id a gallon urtil a flat rate for the Dominion was fixed. “It is a gross ’ ’ustice to South Canterbury,” said Mr F. Chittock, supporting Mr Andrews' suggestion. Mr Andrews emphasised that he did not propose to reduce the profit made by garage owners but to ask the Minister of Industries and Commerce to reduce the rail charge which consumed the extra Ud a gallon. It was decided to give effect to Mr Andrews' suggestion and to solicit the support of the Automobile Association (South Canterbury).