Why Fuel Prices Have Risen
Page 38
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THE major oil companies have raised the price of standardand premiumgrade petrol by id. a gallon and of oil fuel by id. a gallon. Increases in world prices of such products and hardening tanker freight rates have caused the advances.
Seeking the reason for the discrepancy between the additions to the prices of petrol and oil fuel, a representative of The Commercial Motor was told by a spokesman of a large distribution concern that determination of local prices in different parts of the world was largely based on market figures prevailing in the important oilproducing area of America—the "Gulf Coast."
Last December, oil fuel went up in value by one cent. a gallon and this month standard-grade petrol rose by cent, a gallon. Unless prices in other parts of the world reflected such increases, economic stability might be upset and one effect would be that America might find it cheaper to import oil products from abroad.
Moreover, tanker charges had • risen from £1 12s. 6d. a ton to £2 2s. 3d. in the past three months.
Prices of petrol and oil fuel have fluctuated for three years. Standardgrade petrol at the new inner-zone price of 4s. Id. a gallon compares with its cost a year ago of 4s. 3id., and oil fuel at its revised bulk price of 3s. 81d. contrasts with 3s. na. two years ago.
u4 Premium-grade petrol, now 4s. 6d. a gallon, was 4s. 50. when it was reintroduced in February, 1953. It fell to 4s. 5d, after two months, and rose to 4s. Sid. after another three months, staying at that price until now.
Mr. J. A. Clarke, general manager of the Ulster Transport Authority, stated last week that the price increase would add £20,000 a year to costs. Belfast Transport Department will incur an extra expenditure of £5,610 and the Trent Motor Traction Co., Ltd., £5,500.
3M. SQ. FT. MORE FOR VAUXHALL
WITHIN the next five years an area of floor space of 3m. sq. ft. is to be added to the present factory area of Vauxhall Motors, Ltd., of approximately 31m. sq. ft. This will enable output to be doubled.
The Luton factory will be enlarged by the erection of new buildings, totalling 1 fm. sq. ft., and will be devoted largely to the production of cars and light vans. The Dunstable factory will be extended to cover 1,630,000 sq. ft. Assembly and export packing of Bedford vehicles will be concentrated in this plant.
The only processes in connection with the manufacture of Bedford vehicles which will he done at Luton will be the production of pressed-keel components and the manufacture of cabs and differentials.