DISTRIBUTION OF PETROL

Hokitika Guardian, 23 October 1931, Page 3

DISTRIBUTION OF PETROL

BOWSER BURDEN. ONE TO EVERY TWENTYNINE VEHICLES. WELLINGTON, October 21. “The fundamental advantages of bulk importation of petrol,” states a report by the Industries and Commerce Department on motor spirits, “appear in considerable degree to have been lost by the heavy costs of internal distribution resultant in the mam from competitive over-supply of distributive facilities and organisation.” How the immense bowser equpment in the Dominion has added to the cost of petrol is shown by details of the report. There are 7651 pumps in use, and this means that there is at least one pump to every twenty-nine motorvehicles in the country.

Pumps are supplied to retail sellers by the four main importing companies on the basis of £lO deposit and 10s per annum rent, but garage proprietors who supply their own pumps obtain a rebate of a halfpenny per gallon on petrol sold through them. The total value of plant, equipment and other fixed assets, including pumps owned by the four companies, i.s £3,129,763, which means an annual interest outlay, on a 7 per cent, basis, of £219,083.

Petrol free on board in America is quoted at 4J cents per gallon, and its landed cost, including the 6d per gallon duty, is 10.27 d. The difference between this figure and the retail cost is made up in handling charges aril profits in New Zealand, but owing to inadequate financial information at the Dominion offices of the chief importing companies the report is unable to assess accurately the factor of profit.