RISE IN PETROL.

Star (Christchurch), Issue 12707, 31 July 1919, Page 3

RISE IN PETROL.

OVER A SHILLING INCREASE,

There appeared in the “Star” recently a cable message from New York, dated July 22, stating that motor petrol of 60 to 62 degrees test sold during the week ended July 19 at 24£ cents a gallon wholesale, and 2-7 cents retail. Special petrols sold, wholesale, at 33J cents for 72 to 76 degrees spirit, in steel drums, and at 3ii cents for 68 to 71 degrees, in steel. In response to inquiries by a representative of the “Star” yesterday, the manager of the local branch of the Vacuum Oil Company stated that the retail price of the company’s motor spirit would be increased to-morrow by Is 4d per case, making it 27s 6d. The retail price of the company’s benzine would be brought up to 27 s per case. Questioned as to the cause of the increase, the manager referred the reporter to the cable setting out the increases in price in America.

“ But will that apply to the stocks you already have in hand?” asked the reporter. “ Yes,” was the reply. “We equalise our prices. There has been a2s 8d rise at Home- Instead of making a 2s 8d rise we take into consideration stocks in hand and stocks afloat and split the difference.” From other sources it was gathered that retailers would be obliged to charge the increase on stocks they held, in order to protect the small dealer, who could not hold large stocks and consequently would have to buy at the current price. The maximum price for petrol had some time ago been fixed by the Board of Trad© at 27s fid, but it had been sold under that figure hitherto. It was surmised that the drop in the American exchange rat© was having its effect upon petrol prices. It was stated that the Vacuum Oil Company generally set the standard in the matter of prices, and that probably other' brands of petrol would rise in price accordingly. Retailers as a rule made about 2s on the wholesale price, hut wastage of course reduced this profit. The local manager of Messrs A. S. Paterson and Co., proprietors of “Big Tree,” declined to state to the reporter whether or not the price of thaL product would be increased. *

Very large consignments of petrol haye arrived in Lvttelton recently, and It is imderstood that a vessel will arrive in about a vreek’s time with a further consignment.