RUSSIAN MOTOR SPIRIT

Waipa Post, Volume 44, Issue 3190, 14 June 1932, Page 5

RUSSIAN MOTOR SPIRIT

MOTORISTS SECURE CONTRACT. A contract has been entered into between Associated Motorists Petrol Co., Ltd., and Russian Oil Products, Ltd., ; London, a British company registered in England. The contract grants to the New Zealand company an exclusive monopoly (for a period of seven years) for the importation, distribution, and sale of Russian petrol, lubricating oils, and kerosene. Mr A. E. Batt, a director of Associated Motorists, is the authority for the announcement. He has informed The Post that Russia to-day holds the key position in the world's petroleum. Itis now the second largest oil producing country in the world, its production being exceeded only by the U.S.A. Russia's oil fields, however, have scarcely yet been tapped, and their potentialities are considered to be enormous. As an indication of the growth of Russian production, the output in 1922 was approximately 1,190,000,000 gallons, and in 1931 gallons. " Russian oils are already distributed, in many of the important markets of*the world," said Mr Batt, " the principal being England, Italy, France, South Africa, Germany, Spain, Belgium, and all principal Asiatic countries; the French and Italian navies, the Spanish monopoly, and other large State departments, as well as most of the important shipping companies of the world are also all big users. England is the largest user of Russian petrols, which, because of their inherent properties, are peculiarly suited to the small., 1 high compression, high efficiency English engine. " From the economic standpoint," he continued, " there is much that New Zealand can gain as a result of the agreement entered into by our company. Russia is a tremendous market for raw materials—wool, tallow, and hides, are among her principal imports. The importation of Russian oil to New Zealand opens the door to valuable reciprocal trade, and it is anticipated that Russia will become an important customer for New Zealand raw materials." When asked what effects the Associated Motorists Petrol Co., Ltd., would have on the New Zealand petrol market, Mr Batt said his company was an entirely New Zealand financed and controlled organisation, and that it would be entirely free to direct its own policy in every way, and would be in a position to meet all competition. Having an exclusive monopoly of these oils, would place the company in an important position in the New Zealand market. The entire profits of the company would remain in New Zealand. " This, combined with the income tax that our company will pay direct to the New Zealand Government, should be an item of material assistance to our Dominion in the present time of difficulties." Associated Motorists Petrol Co. will distribute its products through garages and petrol stations i and already a large number of stations and garages throughout New Zealand have been linked up to distribute these products. The company is now erecting its bulk installations, and immediately these are completed the first tanker will be en route for New Zealand. Within the next few months the company will have supplies of petrol available.—Evening Post.