From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
Article from 'THE AUTOCAR' discussing the causes of high petrol prices and suggesting solutions such as co-operative distribution and the use of alternative fuels.
| Identifier | ExFiles\Box 32\1\ Scan013 | |
| Date | 3rd August 1912 | |
| R.R. 285A C THE AUTOCAR, August 3rd, 1912. 211 Motor Fuel Supply and Prices. RC{R. Childs}1000 A Few Suggestions. By a Petroleum Expert. THANKS to ample capital and superb management going hand in hand, the production and marketing of petrol is for all practical purposes in the hands of two companies, viz., the Shell Transport Co., Ltd., and its allies, and that lusty offshoot of the Standard Oil Company known here as the Anglo-American Oil Company, Ltd. For years both have been extending the area of their operations, freezing out or buying up opponents likely to threaten their supremacy, and the result is that to-day they hold the entire business of the United Kingdom. To attain such a result immense sums of money have been provided and spent on schemes which have taken years to fructify, and for the time being they are taking a toll from the motorist which he naturally resents but does not know how to avoid. Briefly, this position may be summed up "To the victor the spoils." There are several factors apart from the above all tending to affect petrol prices to which a brief reference is desirable. Some Causes of the High Price of Petrol. (a.{Mr Adams}) At the present time, and for twelve months past, ocean freights have been abnormal, and one is within the mark in stating that the difference between normal freights and those ruling to-day (and likely to continue for some months to come) is equal to fully 1 1/2d. per gallon. Tonnage is building, freights will come down, but the time is not yet. (b.) Rail freights we never hear about, yet they are unnecessarily high, how high and how they inevitably affect the cost of petrol to inland towns the general public have no conception. [True, but are they any higher than when petrol was 1s. per gallon? — ED.{J. L. Edwards}] (c.) The Government (like the railway companies) err on the side of caution, their storage and transport regulations may be necessary (which is doubtful), but they certainly add more or less to the price paid by the user. [True, but are they any more onerous than when petrol was 1s. per gallon? — ED.{J. L. Edwards}] (d.{John DeLooze - Company Secretary}) We also have the famous Budget Tax, which takes a cool 3d. per gallon out of the motorist's pocket on every gallon of petrol he purchases, and it may be remarked in passing that 3d. per gallon is a lot of money both actually and in percentage of total value. [True, but petrol was sold at 1s. per gallon, including the tax, only a few months ago.— ED.{J. L. Edwards}] (e.{Mr Elliott - Chief Engineer}) But the most inexcusable and foolish reason for dear petrol is the fact that nearly all motorists insist on buying a particular brand, and will have a light gravity spirit. Such a policy is suicidal from a price point of view, as will appear later. Having set out the causes, let us look around for possible remedies which, by the way, are at the moment non-existent. There is, however, one small cloud on the horizon which must be causing the monopolists a certain amount of apprehension, and that is the opening up of the Maikop Field. True that at present it does not seriously threaten their position, but if past progress is maintained in the future it will not be long ere Maikop is offering large quantities of high-class petrol in the United Kingdom produced from a light and rich crude yielding an unusually large percentage of spirit which has already, without any difficulty whatever, found a ready market in Germany, where its outstanding merits at once secured for it a large and increasing demand. Now assuming that the outcome of the present agitation against high prices leads to some definite and effective action, the form this is most likely to take will probably be the creation of a co-operative distributing company under the auspices of the R.A.C. and the A.A., and the question naturally arises, from what source can they draw supplies of petrol for their members outside the monopolists? There is only one answer, and that is Maikop, and unfortunately Maikop at the moment might not be able to furnish all their requirements, so that the balance would have to be drawn from the monopolists! We might have a Royal Commission to inquire into the doings of the monopolists and the railway companies with a view to regulating prices and freights, but the probability is that such a Commission would never get down to the true facts of the business, and nothing beneficial would result from such an inquiry. What about alcohol? It can be used in internal combustion engines, and this is certainly an opportunity for the Government to remove restrictions and take measures which will result in encouraging the manufacture of cheap alcohol for power purposes. Once engineers saw the necessity of developing in this direction we should soon have a satisfactory engine, and once petrol had a competitor more reasonable and stable prices would follow. To alleviate the present position motorists must get away from a particular brand and insist on having a certain gravity spirit. There is no reason whatever why up to .750 gravity spirit should not be in general use winter or summer. Once heavy spirit is sufficiently tested it will be found that the engine gives more power and the mileage per gallon is substantially increased. Apart from heavy spirit being cheaper, the fact remains that if the majority of motorists were to discontinue using light gravity the make would be much increased, and the heavier quality would contain the lighter fractions, which must now be separated and sold apart, thus limiting the quantity and enhancing the price. A Crisis Imminent. Last year we imported upwards of 69,000,000 gallons of spirit. For the first half of 1912 the imports are almost at the rate of 80,000,000 gallons per annum. Consumption is going up by leaps and bounds, whilst production is barely able to keep in line, and will eventually drop behind unless we have some remarkable development in the way of light oil production, for it must be borne in mind that there is only a limited production of crude oil yielding an appreciable quantity of petrol. To thoughtful readers it must be evident from the foregoing that a critical position may develop at an early date unless prompt and effective action is taken on one or other of the lines indicated herein. Indeed, it is doubtful if action, however prompt, will be in time to avoid a crisis. Motorists as a body have not yet got beyond the grumbling stage; they will waken up when it is too late, and to the outsider interested in the development of the internal combustion engine and its fuel requirements there is something quixotic in the position. C20 | ||