A taxi firm crippled by rocketing fuel bills is making a desperate bid to survive by selling its entire 40-strong diesel fleet for petrol-run cars which can be converted to gas.
Codsall Cars is hoping to slash its current £20,000 a month fuel bill by more than half to around £8,000 and says other taxi firms are also looking at converting to gas to stay afloat. The firm, established 10 years ago, is one of the biggest in the area, carrying out school contracts for Wolverhampton, South Staffordshire and Shropshire councils.
Both Liquid Petroleum Gas (LPG) and Compressed Natural Gas (CNG) are being touted as cheaper and greener alternatives to traditional petrol and diesel, with no apparent effect on engine performance.
The replacement operation is costing Codsall Cars around £90,000 but owner Leila Stride hopes to save £100,000 over the next two years by making the switch.
Already the business, based in Lane Green Avenue, Codsall, has replaced seven of its taxis and aims to complete the change-over by Christmas.
Codsall Cars’ fleet manager Stuart Brittain, 40, said the cabs had to be replaced by petrol-engined vehicles first because conversions could not be carried out on diesel cars.
With each conversion costing £1,600, the company has taken out a bank loan in order to carry out the rescue programme.
Mr Brittain said: “We had no choice with diesel £6 a gallon. It was either that, or go under, and it’s by no means guaranteed that we’ll survive even by taking these measures.
“It’s been very hard. The business was doing okay until recently but the price increases have been crippling us. About two months ago we were near to closing. This is our only way out.”
The firm operates around a third of all the taxis in south Staffordshire and is committed to its school contracts for the next 10 years. The fleet includes saloons and estates of six and eight-seaters in size.
“The way we see it, if we want to see those contracts out, we’ve got to change,” added Mr Brittain.
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