PETROL
SINCE the Government now estimates that the United Kingdom will be deprived of a quarter of its normal oil supplies, the decision to ration petrol was inevitable, as were the other economy measures which the Minister of Fuel and Power, Mr. Aubrey Jones, announced to the House on Tues- day. What further cuts may have to be made and how long this shortage will last no one can yet say. Estimates still vary for the time it will take to restore traffic through the Canal, and so far there has been no sign that the Americans are prepared to help Europe with special arrangements for oil, even though the OEEC a week ago submitted a common scheme to the American authorities. At some stage the United States will have to do something more than just allow the American companies to sell oil to Europe in the normal way. For one thing the cut in supplies of fuel oil to industry, which in Britain will be 20 per cent. from the beginning of next year, may begin to threaten industrial production, particularly steel out- Put. More important is the fact that this country cannot afford many dollars for American oil. Prices have already been put up in Venezuela and in America, and transport costs have risen. In a broadcast interview the Minister said that he would not be surprised if the oil companies here were shortly to ask for an increase in petroleum prices. This seems to strengthen the case for supplementing the official rationing scheme by a sharp increase in the petrol tax until the emergency is over.
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