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Dery may go up 4-5p a gallon
Page 4
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Esso is playing its cards close to the chest because there is no guarantee that its suggested increases will be politically acceptable and if enough pressure was brought to bear • the company could find itself doing it over again.
However, there are two very good reasons why the price rises could be split in favour of petrol and the private motorist at the expense of diesel and commercial interests.
The first is a hard and fast economic one. Since the last round of increases back in February and December there has been a big drop in petrol consumption. The Esso spokesman said that the fall has been approximately 7 per cent over the past 18 months. In contrast the drop in diesel use had only been about half that figure. These previous increase were specifically aimed by tF Government at hitting the pr vete motorist in' a bid to ct oil imports. This has worke but it has led to a price-cuttir war.
It is understood that major companies want to S4 an end to the price battle, wai to stop the sliding sales, as also redress the balance. Ar that means keeping the •nel petrol price increase as lo as possible.
The second reason is mut more of a political one. Havir " bashed " the private motori once, can the Governme afford to do it again, partici larly when it is trying to kee prices down in the publ sector ? The pundits beliel that the Government can't, ■ at least is not prepared to, tal the chance.