Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-04-07
THE PRICE OF GAS

Frequency of oil stations along the
route Of the automobiles is n condi-
lion against whic' the owners OF the
cars are not, at first thought. likely
to complain. When, however, they
consider that an unnecessary num-
Der of these are being supported by
somebody and that somebody is not
continuing the support without
deriving from some source money
enough to do so, they have
begun to wonder whether in the price
they pay for gasolene may not be
found the funds for up-keep.
AS to that price it appears to be
fixed by someone. Notwithstanding
there are ample evidences of a spirit
of competition among the different
companies to sell their own brand Of
gas. Richard Spillane, writing for
the Public Ledger imparts the follow
ing information:
III NE" OIh anu lIIG
wholesale price Of gasoline is four
teen cents a gallon, according to the
latest quotations at hand. This four
teen cents a gallon covers the cost
of getting the oil out of the earth,
transporting it by ship or by rail--in
some instances thousands of miles
refining it and, at the same time, Civ
ing profit to the producer, the.
transport people and the refiner.
The service station price of gaso-
line in those two cities is twenty-s six
cents a gallon--tWelve cents, or more
than SIS per cent, above the whole
sale price.
apparently the costs of retailing
are unwarrantedly high or the profits
Of the retailers ulconscionably great.
1t is predicted gasoline prices will
be advanced in a short time. The
reason for it is increased demand.
The largest oil company in the world
reports extraordinarily large bust
ness, its sales for the first three
weeks Of March being greater than
for any full month of March in its
history.
What is true about gasoline is
true also of kerosene. The wholesale
price of kerosene ranges from three
and one-half cents gallon in Chica-
go to five cents in Philadelphia. Its
retail price is about fourteen cents,
or from IT'S to 300 per cent above the
wholesale price" =
Those who ought to know say gas
oline and kerosene prices are regu-
lated today as definitely as they were
when the Standard Oil had a monop-
oily of the trade. No one suggests
that there is not vigorous COMPETE
ton or that the letter of the Sher-
man law is not obeyed. But they do
alleSe that from persons outside the
Oil companies come suggestions as to
what the price should be, and that
rare is the refiner or wholesaler who
does not accept the suggestion. The
fact that all oil companies, as a gen.
eral thing, sell at the same price
would seem to support the idea that
there is an understanding not only
among wholesalers but retailers.
Whether there is combination or
not, the fact remains that the spread
between the wholesale and retail
prices Of oil is too great today and
has been too. great for years.
This is a period of economy. The
oil companies have done a remark
able work in the production end of
their industry. but have permitted
excessive costs to develop in the dis
tributiye end. The cheaper oils are
to the public, the greater their use.
1t is the business of the refiners, as
well as that of the users of Oil, to
see that the price to the people is
brought down to legitimate level.
Apparently busting the Standard
Oil trust didn't exhaust the ingenuity
of the oil ma eistrates