Petrol Crisis In Australia; Rationing Is Likely

Wanganui Chronicle, 18 August 1949, Page 5

Petrol Crisis In Australia; Rationing Is Likely

SYDNEY. Aug. 17.-“ The petrol situation in Australia was discussed at a conference between the State Premiers and the Commonwealth Prime Minister yesterday. The Director of Rationing, Mr. L. B Cumming, said there would be a grave shortage in the slimmer, and the position would be serious, especially for harvesting. Petrol sales in June and July were 21.680,000 gallons in excess of the quotas fixed under rationing. Against .that a supplementary quota of 3,000,000 gallons was fixed because of the strike conditions. That left 18,630.000 gallons to be made good by restricted sales in the succeeding ten months. The Prime Minister (Mr. Chifley) said Australia might have to reduce its petrol imports. Petrol was the heaviest drain on the British Treasury dollar pool. Briefly the position was that there were no more dollars for petrol. At a private meeting after tne conference the State Premiers decided to inform Mr. Chifley that they would refer his proposals to reintroduce petrol rationing to their State Cabinets. The most popular proposal among them was that the Commonwealth should resume power to ration Petrol. For the first time since the British dollar crisis the Premiers were unanimous in admitting that some system of control of the distribution of petrol must be found if Mr. Chifley persisted in his refusal to allow any increase in importation.

BOWSERS EMPTY BY CHRISTMAS’ No official statement was macle, but the Premiers admitted privately tha«. the latest figures submitted by Mr. Chifley had convinced them of the truth of his statement that bowsers would be empty b v Christmas unless early action was taken. Even if tne State Governments agree, it will take some weeks to reintroduce petrol ra*

tioning. At the conference only the las' manian acting Premier was in favour of petrol rationing by the States, ana before the conference tne premier or Victoria, Mr. Hollway, and the Premier of West Australia, Mr. McLarty, had opposed any form of rationing. Mr. Chifley said that if increased consumption continued it could not be made up by increased importations. Australia might have to live within the dollars she earned and. not expect any dollars from the British Treasury The Director of Rationing told th? conference that sales even before the coal strike showed a phenomenal increase, and that to offsetVhe overselling which had already occuyed it would be necessary for oil

to cut down their sales for the remainder of the year. This would mean that less petrol would be available than when rationing was In force. To a suggestion by Mr Holl way that petrol might be obtained from Russia, Mr. Chifley replied, amidst laughter: “Surely you don’t really expect us to put red petrol into Victorian pumps.” EFFECT OF LIFTING RATIONING. Mr. Chifley said that the last time rationing was discussed some people had said that increased consumption if rationing were abolished would be up to 10 per cent. The actual increase had been 45 per cent, in June, thereby proving the oracles “complete fools or complete liars.” The Premiers were warned that without rationing chaotic conditions might develop in the summer months. Mr. Chifley said the Government would use its influence with the oil companies to have enough petrol reserved for harvesting. Mr. Hollway said that over the past six weeks it had not been possible to judge what amount of petrol would be consumed. That was because of the strike emergency transport and the fact that many people, fearing rationing, had purchased petrol and not used it. The Minister of Fuel and Shipping, Senator Ashley, said that figures prepared by his department showed that the increase in petrol consumption due to the strike was 3,000,000 gallons and that by the end of the month it would be 5,500,000 gallons. OIL COMPANIES DISAGREE. A Sydney report says that a spokesman of a major oil company states that Mr. Chifley’s claim that petrol sales increased by 45 per cent, does not bear analysis. “Mr. Chifley is either trying to mislead the public or he has received bad advice,” he said. “When rationing was lifted in June the petrol companies withdrew big supplies from bond and sold to garage men, farmers, and direct users. We know a big proportion of the increased sale went into reserve and not, as Mr. Chifley claims, into direct consumption.” A Sydney survey conducted by a newspaper did not disclose one garage which had sold 45 per cent, more petrol in June than in May. Some proprietors claimed that there was a slight reduction in sales, and others that June was a normal trading month.