THE EFFECT OF THE PETROL PRICE INCREASE
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What the Addition of 3d. per Gallon Means to the Haulier, the Ancillary User, and the Coach and Bus Operator
NEITHER an increase in taxation nor an addition to the price of petrol is a matter which can be viewed with equanimity. Either may, in fact,, amount to the same thing, so far as the pocket of the user is concerned. There are, however, these considerations to be borne in mind, so far as the latter is concerned,; it falls more fairly on the user, according to the extent of vehicle use, and its effects are easier to assess.
Au increase in the price of petrol adds to the expenses of the user in direct proportion to the mileage of his vehicles, and is proportional to the size and capacity of those machines.
Actually, given a reasonably accurate knowledge of the mileage per gallon of the individual machine, the additional expense is ascertained by dividing the amount of the increase in the price per gallon -by the figures for m.p.g. The result is the addition to the cost per mile. That figure, multiplied by the weekly mileage, gives the total extra cost per week.
The foregoing is the procedure which has been adopted in preparing Table I. That table will be of assistance to those who are without accurate figures for the fuel constunption per mile of the vehicles in which they are interested.
The real value of the table is, however, in the general indications which it affords of the proportions in which the increase in the price of petrol affects vehicles of different sizes and operating over various Weekly mileages:
Vehicles of 10-ton and 12-ton capacity, which are normally operated over weekly mileages in the region of 1,000, will, of course, involve their owners in the biggest increases, as much as £6 per weekbeing added to the. operating expense of a 12-tonner covering 1,600 miles per, week. The average 5-tonner, running 500 miles per week, will cost its owner about £1 per week more, whilst a 2-tonner, running about 1,000 miles each week, will add the same amount per week to the expenses of the owner.
There is a figure of cost which cannot be tabulated, but which is, however, of considerable interest to many vehicle owners, and that is the additional cost per ton which this 3d. per gallon will involve. The required information may be ob-' tallied by taking note of the average weekly mileage, reading the extra cost per week from Table I, and dividing that figure by the average weekly tonnage.
Hauliers are interested mainly in the cost per mile, although there are many who will also desire to know the extra cost per week and ethers who will be concerned chiefly with the cost per ton. The figures are there for them, or, in the case of the tonnage statistics, may easily be calculated.
As most haulage contracts contain a clause to the effect that the rates contained therein are subject to modification in the event of any alteration to prices of commodities, hauliers who work on Contracts will be able to pass the increase on to their clients. Even those who are not in the happy position of working to written contracts of that description should be able to 2orne to such terms with their customers as will ensure that they, do net have to bear the whole of the nacrease.
That is not the case with the coach and bus operator. His revenue is derived from fares and, unfortunately, the increase in cost, cakulafed on a basis of passengermiles, is so small that no rational increase in fares can be made to offset it. Table II shows the figures. In the case of medium and largesize buses it amounts to no more than 1-30d. per passenger-mile.
So far as urban services are concerned, therefore, the idea of passing the increase directly on to the passenger by raising the price of his ticket is impracticable. With fares at id. per mile it would be possible to make a rational increase only over a 10mile journey.
The operator must either "grin and bear it" to the tune of about £1 1.0s. or 12 per week per 1,000 teas-miles, as the figures in Table II show, or modify the fare stages. How the average modification necessary to meet the increase may be calculated is best demonstrated by example.
Assume the case of a 32-seater bus, the average loading being onethird of the seating capacity, that is to say, 10 or 11 passengers. The increase is equivalent to 0.034d. per passenger-mile. If the average fare be 1/d. per mile (1,760 yds.), the fare stages should be decreased in length in the proportion of 0.034 divided by 14d., i.e., by 2.72 per cent., or approximately 48 yds., to the mile, assessing the stages on the basis of 14d. per 1,712 yds.
It is inevitable that, in a discussion of this kind, some reflections concerning the advantages of steam vehicles and oil-engined lorries and buses must come to mind. The Commercial Motor Tables of Operating Costs, which were published in the issues of this journal dated July 19th and 26th, afford a basis of com
parison for vehicles of these types. It is of interest to take an example each of oil-engined goods vehicles and buses, and thus to obtain a. graphic comparison.
An oil-engined 8-tonner is -there quoted as costing 7.90d. per mile, when covering 800 miles per week. The corresponding figure for a petrol-engined vehicle was 9.89d. per mile. That 9.89d. now becomes 10.55d., so that an existing advantage of 1.99d. in favour of the oil
enginecl chassis is now increased to 2.65d. per mile. Similarly, a 56-seater petrolengined bus, operating over 1,600 miles per week, is shown to cost 11.00d. per mile, as againg the 9.84d. of the oil-engined vehicle, an advantage. of 1.16d. per mile in favour of the latter. Now, the petrol-engined bus will cost 11.50d, per mile, increasing the advantage of the newer type of machine to 1.66th per mile. S.T.R.