Gasoline Prices

One more theory concerning the establishment of gasoline prices was advanced last week. Inasmuch as its proponent was Walter C. Teagle, President of the Standard Oil Co. of New Jersey, it deserves careful consideration.

Mr. Teagle stated that, under existing conditions, gasoline could be obtained more cheaply in many cases from fuel oil than from crude petroleum. But fuel oil has been so extensively taken up of late that it is now sold in direct competition with coal. In consequence, the going price of fuel oil depends to a considerable extent on the current price for coal. From this it follows that the price of gasoline, too, depends somewhat on coal prices.

Mr. Teagle pointed out that our reserves of coal are greater and more certain than our reserves of petroleum, and that for this reason coal prices were more apt to affect oil prices than vice versa.