PETROL COSTS DOLLARS

Bay of Plenty Beacon, Volume 11, Issue 83, 22 September 1947, Page 7

PETROL COSTS DOLLARS

WILL RATIONING- COME? Statistics showing that less than a quarter of New Zealand’s fuel oil comes from dollar areas, and an explanation of how curtailments of motor spirit imports helps Britain, were furnished to a contemporary the other day by an authority on the oil position. Quite apart from the currency problems and help to Britain, he said, there was a world shortage of refined petroleum of some millions of tons annually. This had been brought about by a fantastic increase in demand, combined with a world shortage of steel necessary for new refineries, tankers, tank storage, pipe lines, and other uses. For every 100 tons of additional fuel oil delivered to consumers, an additional two tons of steel were required. From such particulars, the realistic New Zealand motorist would conclude that if he failed to make a voluntary cut of 10 per cent.—the British private motorist’s fuel allow-

ance had been eliminated by law—he must inevitably face a control

system,. “The view that New Zealand’s imports are mostly from sterling' sources, and that they therefore impose little or no strain on the dollar position is erroneous so long as the total production from the sterling area is below total consumption there,” the informant added. “The petroleum requirements of the sterling area have to be considered as a whole. If purchases of oil from dollar sources have to be limited to an overall total, then it does not matter where, that overall total is marketed, the main concern being: (a) that the overall total is not exceeded, and (b) that the oil is physically transported as short a distance as possible in order to speed up tanker movements. This explains why curtailment of petrol consumption in New Zealand is of help to Britain regardless of the source of supply.” The following figures give details of New Zealand’s actual imports of petroleum for 1947 up to August, and estimated imports for the remainder of 1947 based on normal consumption (the quantities are in long tons; the approximate values, c.i.f. and e., New Zealand currency): Aviation spirit: From dollar areas,

1000 tons, approximate value £16,400: from sterling areas, 10,000 tons, value £195,200. Motor spirit: From dollar areas, 83,000 tons, value £956,000; from sterling areas, 306,200 tons, value £4,061,400.

Kerosene: From dollar areas, 2000 tons, value £16,000; from sterling areas, 30,000 tons, value £266,880. Automotive Diesel: From dollar areas, 6700 tons, value £56,700; from sterling areas, 30,400 tons, value £292,500. Fuel oil: From dollar areas, 44,900 tons, value £413,200; from sterling areas, 192,000 tons, value £1,568,000. Total from both areas, £707,400 tons; approximate value, £7,842,200. The foregoing figures show that £1,458,300 of fuel comes from dollar areas and £6,383,900 from sterling areas. However, in dividing the sources of the oil supply with “sterling” and “dollar” areas, it must be remembered that included in some cases in the value of sterling area imports is an invisible dollar value, which may be caused by the use of dollar equipment in producing and refining the oil, or by use of dollar tankers.