PETROL STOCKS THOUGHT AMPLE FOR ANY DEMAND

Bay of Plenty Beacon, Volume 15, Issue 68, 12 July 1950, Page 7

PETROL STOCKS THOUGHT AMPLE FOR ANY DEMAND

Petrol stocks in New Zealand are considered by the oil • companies to be more than sufficient to meet any increased demand that may develop following the recent derationing of motor spirit. Several authorities in the industry, who have been consulted, were of opinion that the normal demand was more likely to show a temporary downward trend until such time as reserve supplies held by most motorists had been used.

Now that rationing had been terminated there was no longer any need for motorists to store up supplies of petrol, it was stated. Executives of the old companies said that the overall stock position was good and that there were adequate stocks in the country or at short call to meet any increased demand. One authority stated that a marked increase in demand was not expected, as this was the middle tof the year, when the demand for petrol was slackest.

Another authority considered it highly probable there may be a drop in consumption in the meantime, for it was estimated that at the end of a month motorists in the aggregate held from three to four million gallons in store in the tanks of their cars or in small containers.

It was stated in one quarter that there was no doubt of the ability of the oil companies to meet any increased demand, but it was not expected that this would be very appreciable. The amount of petrol normally held in New Zealand is believed to be about four months’ supplies. The sale of petrol is subject to price control, and it is not thought in the industry there will be any price war between the companies in order to compete for custom. The quality of petrol is also officially prescribed.