Petroleum strike – possible nightmare for car rental

IN light of the current petroleum industry strike, car-rental companies are reporting diverse effects on their business operations.

Says Melissa Storey, Executive Head: Strategy, Development & Marketing First Sixt Car Rental: “We certainly are affected by it. At this stage, Gauteng has been the hardest hit by the strikes, affecting the supply of fuel in Gauteng.  We received a letter yesterday from Engen, our fuel supplier, stating that they have declared a force majeure situation, as provided for within our agreement and, as a result, they will not be able to supply us, and other customers, with our respective requirements of fuel during the strike.”

However, Storey says that Engen did state that it would, however, use all reasonable measures to procure and supply fuel during this period.  As a result, First Sixt Car Rental is taking reasonable and realistic action to the problem. The following management decisions have been taken in Gauteng only, at this point:

• All clean cars (new check-outs) will only be rented out with a half tank of fuel – upon termination of the rental the fuel amount due will be calculated based on the mileage driven.
• Cars terming with less than half a tank of fuel will be topped up to a half tank level for the next renter; the fuel amount due will be calculated on the mileage driven.
• Cars terming with more than half a tank will not be refuelled and will be checked out at the existing fuel level; the fuel amount due will be calculated on the mileage driven.

“Apart from the obvious operational and procedural strain that we are experiencing during this strike, there is a real concern that some customers might request vehicle changeovers due to fuel levels running low, and some perhaps claiming that there is a mechanical defect with the vehicle. We will investigate all changeovers during this period and impose a fine should irresponsible individuals attempt unethical practices like these.”

Meanwhile, Ray Booth, managing director Budget Rent-a-Car South Africa, Namibia, Botswana, has confirmed that the company has only had a one-day “glitch” at its Isando depot, with its petrol supplier falling behind on the delivery schedule.

“We took a cautious view and rented some cars out on a half tank of fuel with a letter of explanation. Fortunately our customers were understanding. Our fuel supplier has now caught up and all is back to normal. The petrol companies are really coping well under trying circumstances.”
Booth reiterated that currently Budget had enough fuel supplies to last until Thursday next week, and a contingency plan in place if the future fuel supply became impeded.

George Corbett , Europcar Operations Director, confirmed to eTNW that the company had as yet not been adversely affected by the strike at its main locations, as the company was at maximum fuel capacity prior to the commencement of the strike.

“Should the strike, however, continue beyond Wednesday/Thursday next week, we may encounter possible shortfalls. Up to now, we have managed to secure deliveries that have assisted in maintaining our stock levels but the concern remains with our rural or downtown locations that currently utilise commercial filling stations, and which are experiencing shortages. For now, we have managed to secure alternative suppliers without this causing any disruption to the rental operations.”

Wayne Duvenhage, chief executive, Avis Rent a Car commented: ”We have been through petrol delivery strikes in past years and are well versed in working with our fuel supplier in finding ways to circumvent problems related to the industrial action being taken.  Fortunately, we have high priority status with our supplier who recognise us as a critical customer for industry purposes (the business traveller and tourist needs being top of mind) as well as the size of our account with them.”

“Our contingency plans with our supplier have all been put into action and our depots have not run dry and envisage that this will remain the case in the coming weeks, however, there is always an element of concern about the length of the strike and its toll taken on the ability for fuel supplies to remain in place over a longer period of industrial action.”

*We would like to hear from you. Have your clients been affected as a result of the strike? Let us know by replying to the editor.