PETROL SALES DECREASE

Sun (Auckland), Volume IV, Issue 951, 19 April 1930, Page 9

PETROL SALES DECREASE

FEWER MOTOR-CARS SOLD THIS YEAR HIGHWAY REVENUE AFFECTED Special to TUB SUN WELLINGTON, Today. A material decrease in petrol sales in the country districts threatens a trials for the Highways Board in tho natter of revenue available for work luring the winter months. To date, stated a Highways Board ifllcial today, there has been no noticeable change in revenue derived from he petrol tax for Highways Board the tyre tax is dropping montniy and this year may reach he lowest level of its existence since imposition several years ago. This * s due to more and better roads and u the lower prica of tyres, the tax >eing ad valorem. However, it 'is expected that there would be a lag between the drop in petrol sales and the diminution of the • ax * and it is expected that within a ew weeks the alteration will be apparent. The tax is levied on petrol as it arrives in the country, and while •notor registrations are still increasing they are moving ahead at a diminishing rate. The manager of one of the orgeat motor manufacturing firms in the Dominion stated today that production had necessarily to be slowed up as sales were falling off. Last year’s carsales in New Zealand totalled 18.000. which was a record in the history of the Industry, but this year it was considered that the cars sold would be somewhere about 12.000, which was the 1928 figures. This must mean a smaller demand for petrol at a very *arly date, for it will mean that cars will not be replaced by people who have entered the ranks of motor-own-ers. Just to what exte?it the Highways Board may be affected it is difficult to sa V- One oil man declared that in the past two months "the bottom had dropped out of country sales.” and as he represents a very large firm, it may be htken that his opinion represents the experience of the whole industry. Oil rompanies are reluctant to give information as to the territorial volume of sates, but probably these represent at teaat half their total sales of petrol for Thus it seems cc*rtain that while roading will continue during the roming months it will shortly be at a diminishing rate, as the amount of kixes available for subsidies is certain be lower.