How can you lower your fleet fuel cost?
Hello readers, as you’ve probably read the title, this article can help you to Reduce fleet fuel cost.
Arguably the highest cost amongst all other costs for fleets is Fleet’ fuel cost. Sure, there are many other costs like maintenance, cost of vehicles, employee salary etc. but fuel is one of the major cost factors for any fleet. The fuel costs have been rising day by day which makes it a big concern, especially for budgeting. The $52.51 per barrel of crude oil in 2017 rose to an average of $69.02 per barrel in 2018 and that would probably rise further in 2019.
Saving cost of fuel can reduce the cost of transportation to a great extent resulting in less expenditure and hence more profit for the company/ individual.
There are many generally factors that affect the cost of fuel which affect all the people but there are fleet specific factors like –
- Vehicle optimisation
- Fuel Management
- Non-efficient driving
- Taking a long time in completing operations
- Long/ un-optimised route plans
One of the best ways to lower fuel cost is by simply taking the help of a Fleet Management software that helps in fuel Management. The Fleet Management software can lower your fleet fuel cost due to the various features it provides like:-
- Route tracking – The fleet app tracks the route of the vehicle through the GPS system on the driver’s phone or the one installed in the vehicle. If the driver doesn’t follow the route or take the long route the system will warn the driver to be on track. This will lower the cost of fuel to a great extent. The manager can also view the current route real-time.
- Fuel theft security – The software will track the receipt of the fuel card and compare with actual fuel refilled in the vehicle. If the two doesn’t match, the manager will get know about fuel theft and can take further action. This will also help in separating the actual fuel cost from any other purchases the driver would have made during his stop at the fuel station.
- Driver performance monitoring – SomeFleet Management system observes every motion of the vehicle. Factors like excessive acceleration, idling (leaving the vehicle’s ignition on when not in use), sudden breaking, RPM, throttle, corning by the driver can lead to poor vehicle efficiency. So by performance monitoring, inefficient drivers can be told to focus on their specific problem through the driver scorecard and trained well.
- Vehicle health manager – The Fleet Management system tracks every system of the vehicle. Alerting the fleet manager about any issue of the vehicle before it becomes a major problem which would result in poor performance of vehicle leading to a decrease in fleet fuel efficiency.
- Maintains a fuel chart – The system develops a fuel chart of vehicles to determine the efficiency of each vehicle, and help the manager to choose the best vehicle for the fleet from the easy to use fleet management app.
Apart from the Fleet Management system, these ways can also save fleet fuel cost:-
- Partnership from fuel providers – signing up for a partnership with fuel providers at a fixed rate can help in estimation of fuel cost in advance. The company will also not face the demerits of fluctuating prices of fuel. On top of that, these providers also provide ease of payment through multiple payment methods and perks like cashback points through the fuel card.
- Choosing a highly efficient vehicle – A highly efficient vehicle will give the better result for the same amount of fuel as compared to a less efficient vehicle resulting in a reduction of fuel cost. One can either buy a new highly efficient vehicle or choose from the existing vehicles by the help of fuel chart developed by fleet Management software.
- Choosing the right fuel – There are various fuels available in the market like LPG, CNG, diesel, petrol etc. Choosing a fuel which fulfils your purpose and costs less would be ideal fuel and will reduce the fleet fuel cost. One can also use the latest fuel like electricity but the only limitations are it’s only applicable to electric vehicles.
- Reducing the fleet size – This can be a challenging task for a company but if implemented can considerably reduce fleet fuel cost.
- Providing fuel-efficient driving technique to the driver, making them skilled and changing their mentality to fuel-efficient driving, resulting in the elimination of fuel wastage in a vehicle. This includes better use of gears, maintaining a steady speed, usage of the fuel-efficient tyre and maintaining correct tyre pressure, anticipating road conditions, refuelling at right places etc.
- Finding shorter and better routes for transportation which can be either done by fleet manager or driver through the GPS system by the fleet app.
- Using season driving technique like summer driving technique and winter driving technique for lowering the fleet’s fuel cost.
- In winter – the oil used in vehicles should be able to work in cold environment, idling for heating up the vehicle should be minimized, using necessary defrosters and seat warmers etc.
- While in summers – the driver should try to reduce the use of air conditioner because they lead to more fuel consumption and can instead opt for opening the windows whenever possible.
So now go and implement these techniques if you haven’t already.
Thank you for reading and have a nice day.
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