Conditions of Sale in Shanghai The question of the price of gasoline has again been raised by the appearance in the "Bulletin Municipal? for January 2%, of a letter from the Asiatic Petroleum Ca., (N.C.) Ld., to the French Municipal Council, stating that the former had reduced the price of their Shell motor spirit supplied to the latter to 44 candareens per gallon. Some of those who have noticed this price and converted it into Mexican dollar cents and as the result of their calculation find that motor spirit is actually being sold at $0.62 per gallon against a retail price} from the garages of $0.80 cents are irked at the difference in price.
In order that the matter might be clearly set before our readers we have uiade inquiries which show that the reduction given to the French Municipal Council amounts to two tael cents and consequently the belief that this alteration in price might lead to a further drop in the retail charge per gallon does not seem justified, nor, it might be added, are there any prospects of any substantial reduction in the near future.
The popular argument based on the foregoing facts is, not unnaturally, that if gasoline can be sold at 60 cents per gallon and yet provide a profit in some cases, there is no reason why the general public should not also be able to obtain their motive power at the same rate, and they go on to point out that in both America and the Philippines gasoline can be obtained very much cheaper than in Shanghai. It is a very human argument and one that cannot entirely be ignored, but. there are two sides to every question and inquiries seem to show that there is quite as much to be said for the importers of gasoline as against them.
Prices Fixep ror Garaces-
To understand the position it should be pointed out that garages in Shanghai are at present filling a role very similar to that of distributing agents. They are, in fact, receiving motor spirit at a certain price and they can only sell it on terms which provide for their remuncration in the way of a commission out of which have to come their own storage, insurance and general operating costs. Consequently when to 62 dollar cents is added this commission the price; charged does not appear excessive and does not include a multiplication of profits.
It might be argued thit if the importers took upon themselves the retailing of motor spirit this commission would be done away with, but against this it might be said that there is really.no reason why they should take up this function to the performance of which the garages seem to have a dain. The retailing of motor spirit is as much a part of their business as is the retailing of tyres and motor parts. while it is also open to question whether motor-car owners would be any the better pleased at having to
Text read from the printed page and cleaned; old type leaves the occasional error.