Taxi association opens depot to protect drivers from rising petrol prices

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Opens in new windowOpens in new windowOpens in new windowOpens in new windowEnter fullscreen mode displaying this image.ExpandThe Tembisa Local Taxi Association (Telta) has opened its own fuel depot to reduce operating costs and lessen the pressure on commuters. Story audio is generated using AI

As rising fuel costs contine to squeeze the taxi industry, the Tembisa Local Taxi Association (Telta) has opened its own fuel depot to reduce operating costs and lessen the pressure on commuters.

Telta opened the depot in partnership with Emo Energy.

The association’s public relations officer Noah Moleya said Telta spends about R140m annually on fuel for its fleet of about 1,000 vehicles but receives no discounts from commercial filling stations.

“We support local garages by buying fuel every day, spending over R140m in a year. We don’t get anything in return; no discounts.

“When the price goes up, we pay and pass the increase on to our customers,” Moleya said.

He said rising fares were pushing some commuters to consider alternative transport because they could no longer afford the increases.

As a result, the association decided to establish its own depot as a way of securing discounted fuel and building a business that could support its operations during difficult economic times.

“The opening of the Telta depot, in partnership with Emo Energy, meant creating employment for 15 locals while getting fuel at a discounted price — R1 cheaper than garages,” Moleya said.

He said an adjoining car wash had also created employment for 38 locals.

According to Moleya, the initiative was not intended to challenge the government or circumvent fuel regulations but to give the association greater financial stability while contributing to the local economy.

“We are not fighting the government by doing this; it is regulated, and the fuel is not tampered with. We are open to having similar relations with any big garage brands,” he said.

He said the experience of the Covid-19 pandemic, when some operators struggled to keep their vehicles running and fell behind on instalments without receiving help, had reinforced the need for alternative sources of support.

Moleya said the initiative had received support from the South African National Taxi Council (Santaco), residents and councillors. In a letter seen by Sowetan, Ward 4 councillor Themba Mbathane expressed appreciation for the relationship and partnership with Telta.

The Fuel Industry Association of South Africa (Fiasa) said fuel purchased at a wholesaler could be priced differently from fuel bought at retail stations, depending on volumes and the nature of the transaction.

Fiasa explained that wholesale and retail licences had different conditions. Wholesale licences permit sales to commercial customers, while retail licences allow service stations to sell fuel to the general public.

The association said businesses could negotiate discounts based on the volume of fuel purchased, with larger orders generally providing greater bargaining power.

For Telta, the depot offers a way to manage a substantial operating expense while creating employment locally. Whether the savings will translate into more affordable fares for commuters remains a key question as fuel prices continue to put pressure on household budgets.

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