THE PRICE OF PETROL.

Taranaki Daily News, 4 March 1920, Page 5

THE PRICE OF PETROL.

GROSSLY EXCESSIVE PROFITS. BRITISH COMMITTEE'S REPORT. By Telegraph.—Press Assn.—Copyrlcht. London, March 1. The report of the Profiteering SubCommittee on the price of motor fuel declares that the present high prices are due to the demand outstripping the supply, also to powerful financial interests taking advantage of this position to raise prices. The report states that the average cost of production of petrol should not exceed 150 shillings per ton, therefore it maintains the price of 460 shillings per ton and reveals grossly excessive profit. It recommends that the whole question of production, price and distribution should engage the attention of the League of Nations, or be made the subject of an international agreement. The report strongly emphasises the point that on the expiry, in 1020, of the existing contracts binding the Anglorersian Oil Company, in which the British Government has a controlling interest, steps should be taken to ensure a reasonable price to Britain, irrespective of other countries. Referring to the cost of transport the report points out that the rate between North Atlantic ports and the United Kingdom before the war was 18s per ton and it is now 2205; from the Persian Gulf it was 30s and it is now 20Ss; from Borneo it was 4Gs Od and is now 410s. The committee expresses the opinion that a fair average rate would not exceed 100s even from the Gulf ports. It recommends the fixing of the retail price of No. 1 petrol at 34id. The report describes the situation as alarm-trig and is strongly of opinion that the ultimate solution is the production of Home or Empire-produced power alcohol. It recommends that the production and distribution of power alcohol be under Government costvol and also suggests that, a tax on motor fuel would he r..ore equitable than a tax on motor cars.—Aus.-N.Z. Cable Assn and Reutei.