Council Says Prestone Antifreeze Price Increase Not Fully Warranted

by Council on Wage and Price Stability on November 4, 1975
by Council on Wage and Price Stability and Michael H. Moscow

The wholesale price increase of 21 percent, or 67 cents to $3.88 per gallon, announced by Union Carbide on September 24 to be effective November 1 for Prestone antifreeze is “not fully warranted at this time,” Michael H. Moscow, Director of the Council on Wage and Price Stability,- said today. “Wholesale price increases in October 1974 and January–1975 totaled 25.9 percent. While there have been cost increases since January, and demand for Prestone appears to be strong, Union Carbide has set a price well in excess of those actual cost increases in anticipation of costs to be incurred in 1976. We believe that in the current economic climate; this type of anticipatory pricing is undesirable. The Council recognizes that producers take into account costs incurred between order and delivery date, but Union Carbide’s increase covers a 14-month period, which is much longer than the entire production- delivery  process requires. “

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