Tuesday, June 10, 1975
THE MICHIGAN DAILY
Page Seven
Oil corporations
raise gs prices
By The Associated Press
Two more oil companies an-
nounced increased gasoline
prices yesterday as an oil cartel
meeting moved toward further
increases in the cost of foreign
oil.
Sun Oil Co. and Gulf Oil Co.
announced wholesale price
hikes of two cents a gallon,
which can be expected to be
passed along to motorists.
IN LIBREVILLE, Gabon, a
meeting of the Organization of
Petroleum Exporting Countries
(OPEC) agreed in principle to
abandon the dollar as the basis
of the oil price structure,
meaning an increase in prices
for U. S. oil companies.
Several delegates also pre-
dicted the meeting would ap-
prove price hikes of 30 to 35
per cent effective when the
OPEC price freeze ends this
fall.
The stock market reacted to
the OPEC news with selling
that left the Dow Jones indus-
trial average off 9.54, at 830.10,
at the close. Most of the sell-
ing was at the end of the day
and overcame a weak rally
prompted by news that major
banks were lowering prime in-
terest rates.
MORE THAN 20 major banks
announced one - quarter point
cuts to 7 per cent in the rates
they charge their most credit-
worthy business customers, fol-
lowing New York's First Na-
tional City Bank's lead last
week in dropping its prime
rate one - quarter to 6 3/4 per
cent.
The prime rate cuts are aim-
ed at reviving lagging business
loan demand. The prime rate
is not directly tied to consumer
or small business loans but
changes in it often forecast
changes in these.
Sun and Gulf said their price
increases are in line with fed-
eral regulations allowing a pass-
along of increased costs. The
increases will automatically
take effect at company-owned
stations and will probably be
passed along to motorists at
other stations.
THE PRICE hikes by Gulf
and Sun follow similar moves
last week by other oil compa-
nies. Standard Oil Co. of Ohio
increased its retail prices by
2.1 cents a gallon, and Texaco,
Inc., raised its gas prices by
one cent a gallon. Texaco and
Exxon USA also increased
prices for residual fuel oil used
mostly in industry.
OPEC's expected move would
drop the dollar as the basis of
the oil price structure and tie it
instead to Special Drawing
Rights, which are based on 16
world currencies. With the dol-
lar down in value against most
European currencies, the move
would mean higher prices for
American oil companies - and
American consumers. The price
of crude oil is now about $11.40
a barrel.
Strip mining bill stripped
Federal Energy Administrator Frank Zarb holds a news conference on President Ford's veto of
the strip mining bill in Washington yesterday-the eve of a oHuse vote on overriding the veto.
At the left is Eric Zausner, deputy administrator.
Cypriots approve
draft constitution
New Hampshire was the first
colony to declare its independ-
encefrom England and set up
its own government. It joined
the union as the ninth state in
1788.
NICOSIA, Cyprus OP) - By a
vote of 37,272 to 230, Turkish
Cypriots approved a draft con-
stitution for their self-pro-
claimed federated state in Tur-
kish-occupied northern Cyprus,
officials said yesterday.
They said 70 per cent of the
total registered Turkish Cyp-
riot electorate of 52,926 voted in
Sundays referendum.
THE TOTAL Turkish Cypriot
population of Syprus, on the ba-
sis of 1960 census figures, is
120,000, or 18 per cent of the
whole island population. Thous-
ands of Turkish Cypriots, how-
ever, have gone -to Britain and
Turkey in recent years.
The Turkish Cypriot emigres
were also asked'to vote in the
referendum through polling
stations in London and Ankara.
The tally of their votes is not
expected until Saturday.
The constitutional referendum
was held despite strong objec-
tions from the Cyprus govern-
ment of Archbishop Makarios,
which speaks for the 540,000
Greek Cypriot majority of Cy-
prus.
THE BASIC provisions of the
constitution would enable the
Turkish Cypriots to be govern-
ed independently of the Greek
Cypriots, but it leaves open the
possibility of bringing the two
communities together under a
federal government.
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