BRITISH PETROL PRICE

Sun (Auckland), Volume II, Issue 618, 21 March 1929, Page 9

BRITISH PETROL PRICE

INCREASE EXPLAINED STATEMENT BY COMPANIES (Australian and N.Z. Press Association) (United Service) LONDON, Tuesday. In reply to an invitation from the Prime Minister to explain the increase in the price of petrol the AngloAmerican, Anglo-Persian, Shell and other companies have submitted a statement. The companies state that, in spite of the increase, and allowing for duty, the retail price is now lower in London than at any time for the last ten years, except between April, 1927, and February, 1929. In that period the companies were engaged in a price war with Russian petrol which was sold below the level of the world prices. The termination of the price war in February made possible a return to the world prices, which was essential to the maintenance of supplies in Britain. The companies explain that the Mexican Gulf is the centre of gravity of the petroleum trade. Its prices are the basis of the world values and 70 per cent, of Britain s motor spirit is drawn from there. The companies show that commercial spirit, which forms the major portion of the trade, realises Is l£d a gallon in London, wholesale, but the total cost, delivered, is Is 2d. Not unnaturally the price of No. 1 spirit, which private car owners use, is commonly the subject of criticism. That criticism is invalid because No. 1 spirit consists of a blend of various spirits. Consequently it cannot be compared with the Gulf spirit as to price. The retail price of No. 1 and of commercial spirit, including duty, is twopence below what it was in 1914 owing to a reduction in the costs of distribution.