Plea For Conservation of Petrol

Manawatu Times, Volume 64, Issue 303, 23 December 1939, Page 6

Plea For Conservation of Petrol

Rise in Price Only One of Inevitable Series TOSSIBLE SHORTAGE FORECAST WELLINGTON, Dec. 22. Petrol prices were raised by a halfpenny a gallon this morning, and there is reason to believe that a serious shortage of supplies will be felt in New Zealand in the near future. The price increases are primarily due to increased costs within the country and the possible shortage of supplies is on account of exchange difficulties and of the British Empire’s war effort. It was announced last evening that as from to-day the retail price for super grade petrol in Wellington will be 2s ojd and for standard grade 2s 4sd a gallon. It was stated that full details of the companies’ increased costs had been submitted to the Department of Industries and Commerce, which, after investigation, approved of the increase. The requisite amending regulations were gazetted last night and take effect immediately. More to Come. This increase is regarded in the trade a 3 one of a series of rises which will inevitably result from the present situation. Those handling motor spirit have been faced with progressive increases in f.o.b. costs, due to war insurance risks and higher freight rate?, while tankers arc in short supply on account of the call that has been made upon them for the Empire’s military needs. Actually *hcre is no shortage of petrol at the source of supply, but the exchange position has created many difficulties in the transfer of the spirit to New Zealand, and the trend of prices is steadily upwards.

War factors aro now beginning to operate more harshly than hitherto, and the necessity of conserving expenditure in any way which will assist the currency resources of the Empire has now become apparent. Money spent on petrol for New Zealand and for in American dollars necessarily reduces the amount of funds available in America for Empire purposes, and this is an influential circumstance in the regulation of supplies to this Dominion. Petrol prices in New Zealand have gone up by 34d a gallon altogether for reasons other than extra taxation. Those who anticipate further increases point out that in Australia the rise due to such factors has been 4d a gallon and in England 3d a gallon. Shortage of Supplies. Something more than a hint of generally restricted petrol supplies in the near future is given in a statement made to-day by Mr. C. L. Bishop, secretary of the New Zealand Motor Omnibus Association, who said that certain confidential information had been made available by the Government to his assocaition relative to the available supplies of petrol. After having been supplied with such information he was convinced that there exists a very real need for the greatest economy in the use of petrol, and that the motor omnibus proprietors in New Zealand would appreciate the seriousness of the position and make every endeavour to reduce tho consumption of petrol wherever possible. Mr. Bishop added that he was satisfied that the need for economy was not common to New Zealand, but the strictest economy was necessary in order help the Empire in its war effort.