THE OIL MAGNATES' VIEW ON PETROL PRICES.
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MR.W. A. DETERDING, who is at the head of-the Royal Shell group of oil companies, has forwarded to us a copy of a letter relating to the report of the Sub-Committee on Motor Fuel, which he has addressed to the President Of the Board of Trade. From more than one point of view, the letter is interesting, and it will be seen that he aompletely traverses the opinion of the sub-committee o.n the question of the proper price for petrel at Atlantic ports. Whilst we observe with satisfaetien Mr. Deterding's agreement with the need for fostering the production of power alcohol or other motor fuels, we do venture to hope that this will not presage attempts on the part of the petrol groups to get a control on the distribution of' 'these alternative fuels.
Mr. Deterding's letter to the President of the Board of Trade says- "I have discessed with these of my colleagues of the Shell Royal Dutch Group who are now in London the published report of the Sub-Committee on petrol prices, and we feel it our duty to place before you the facts as they are known to us. " On the main issue as to the controlling influence on the price in the United Kingdom of the f.o.b. price of petrol in New York we agree with the report. It is not, however, a fect that we. or any other concern, fix or control this price. In View of the gereral impression abroad as to the existence of a world-wide petrol ring we desire to make the statement -.deliberately and emphatically that no such ring exists. No one is in a position to dictate any reduction to, the thousands of oil producers in the United States who sell in the caren market in which we buy. These Iprodueers try to get the beet price they can secure in competition with one another and we have to pay this price for the very large quantities of American petrol necessary to _satisfy the requirements of our clients _ over and above Eastern production. We cannot, as a matter of fact, buy petrol in the UniteA3 States at .less than £25 at Atlantic ports instead of the 17 10e. suggested by the Committee.
It is unquestionable that the world demand for petrol, even at the present time, exceeds the supply,and the great shortage already existing in other European countries is evidence of -this fact. We entirely agree with the Committee that every endeavour should be made to foster the production of power alcohol and other motor fuels of all kinds both in the British Empire and throughout the world.
"" For the present, so far as we can judge, the only possible remedy for existing high prices is a drastic reduction in the consumption of petrol. This is our opinion, hut we desire to state that our group places itself unreservedly at the disposal of the Governments of the chief European coantries for canal-ate,tion as to the position and the steps to be takai."