“C.O.D.” PETROL

Evening Star, Issue 23677, 10 September 1940, Page 6

“C.0.D.” PETROL

NEW BASIS FOR SALES OIL COMPANIES TO RETAILERS " NOT MAKING THINGS BASER " •* It looks like a scheme to make the petrol resellers carry the larger stocks the oil companies have been forced through war conditions to handle,” said a garage proprietor this morning to the ‘ Star ’ in explanation of the announcement that from yesterday oil companies throughout New Zealand will sell motor spirit only on a cash-on-delivery basis. “It is going to do a ]ot of harm to the motor business,” he continued. “It is putting the screws on still further, and restricting the free money necessary to carry on our business, all of which is not* confined to petrol. “ Before this move, which was threatened early in the rationing period, we had to pay within a week for petrol supplied. This is really adding insult to the other injuries we have suffered. It will not affect the * small ’ reseller much, but it will hamper considerably others who have large accounts from business companies, who will not take too kindly to paying cash to resellers. They probably wul want to continue sending cheques on the twentieth of the month.” .Another version of the reason for the move was that it was because of shipping difficulties. “ The Government introdaced restrictions, which were hard enough, hut now_ the oil companies are not making things any easier by their attitude,” said this man. Before the war, payment was on a monthly basis. When war came, if was reduced to fortnightly, then weekly, and then payment had to. be made every Wednesday, even if the petrol had been bought on the day before, he said. Now the “ c10.d.” system had aggravated matters. “ If we have a lot of good_ customers who ‘ book up ’ petrol, this ties up our capital,” lie concluded. ** Unless we have some cash behind us in the bank, we come to a dead end. At present retailers are getting a rough spin, and this move will force a number of them to close up altogether. Drivers of tank wagons are to be authorised to receive payments, according to the advice received by the retailers, and customers, whose purchases, are placed f.o.b. or on rail or road transport trucks, must remit cash with order to ensure prompt despatch. APPROVED BY GOVERNMENT.

As the move had the approval of the Government, the oil companies to whom the above statements were referred declined to comment on the subject.