Price-Cutting War in Gasoline Spreads Publication: Automotive Daily News Dateline: New York, New York Date: 27 August 1925 Subject: Petroleum

New York, Aug. 27.—Further drastic reductions in the price of gasoline were forecast today as the important companies in the industry gave indications of continuing the spectacular price-cutting which has been in progress for some time. The Tide Water Oil Company left its competitors gasping when it announced a 3-cent reduction in tankwagon prices yesterday, but the Gulf Refining Company and the Standard of New York promptly met the drop. Other companies were preparing today to do likewise.

Under the new schedule of prices Tide Water is quoting gasoline at 17 cents a gallon, tank wagon, in greater New York, Staten Island, 3 cents below the price quoted Yonkers and Long Island. This is yesterday by Standard Oil of New York. The Standard of New Jersey has lowered its tank wagon price ½ cent a gallon throughout its territory, making the new price 16 cents. This reduction was immediately met by the Tide Water, Gulf Refining, Sinclair Consolidated, and Texas Company.

In the New England states the Atlantic Refining reduced gasoline prices 2 cents a gallon and this reduction was met today by the Standard of New York, Gulf Oil, Texas and other competing companies. The Atlantic Refining also announced a cut of 1 per cent, to take effect today in Pennsylvania and Delaware.

While the reductions have revived talk of a trade war, the executives of the leading marketing companies refuse to admit that any such conflict is under way. The origin of the present situation, they point out, is plain enough to those who have been watching the production figures. There has been a marked overproduction of gasoline in recent months. The producing companies, misled by the optimistic talk about probable demand, some months ago began to employ the cracking process with such vigor that they soon found themselves in possession of growing stocks in the face of a demand which, while large, was below expectations.