By RAM Tracking on 12 Dec 2022
A large part of the cost of running a fleet business comes from fuel. Even in this age where technology is advancing exponentially, fuel is necessary to run daily operations. This year, fleet companies struggled to keep up with the rising fuel prices, with prices going over £2 in some parts of the United Kingdom.
Rising Fuel Prices
Lately, the fleet industry has gone through a significant upheaval due to the pandemic outbreak, Brexit, the Russia-Ukraine war, and now rising fuel prices. Currently, the cost of petrol is 165.9p per litre and diesel is 190.3p per litre and the Office of Budget Responsibility predicts that fuel prices will further soar by 12p per litre in 2023.
The hike in fuel prices has a ripple effect on household income and air travel. Hence, many countries are witnessing skyrocketed travel costs. According to the World Bank, the depreciating value of currencies of developing countries will drive up food and fuel prices, stirring higher inflation worldwide.
The market volatility will continue in early 2023 as global oil production is gradually reducing and countries are resorting to using their stored reserves. As inventories are depleting, prices are bound to go up, severely impacting the logistics and transportation industries.
What can Fleets Do?
- Fleets will have to change their operating strategies to offset these soaring prices and maintain profitability.
- They need to manage how fuel is consumed to keep their fuel costs as low as possible.
- Data from vehicle tracking provides insights into fuel consumption and areas where they can ensure fuel savings.
Here are Certain Ways to Save Money on Fuel
Run Well-maintained Vehicles
One of the best fuel saving tips is running vehicles in proper condition as it helps to cut down fuel costs.
- Regular maintenance mitigates unexpected breakdowns and improves vehicles’ longevity.
- Well-maintained vehicles consume less fuel and run efficiently, resulting in significant cost and fuel savings.
- Our fleet tracking solution gives a holistic view of all operations and data on vehicle performance, helping managers fix any issues as early as possible to avoid fuel wastage.
- By having your drivers run a customised daily vehicle check, you can catch maintenance issues ensuring that your vehicles that are not road-worthy are not collecting further damages by going out for the day, keeping maintenance costs down.
Monitor Driving Behaviour
The driving habits of drivers have a direct impact on fuel consumption. Speeding and hard braking take up more fuel than driving at a consistent speed.
- Train your drivers with fuel-efficient driving techniques and guide them to drive within the speed limit.
- Our vehicle tracking software monitors driving behaviour and alerts fleet managers on dangerous practices like speeding and harsh braking, ensuring optimum fuel utilisation.
- Monitoring and teaching driving techniques to save fuel reduce the chances of accidents or collisions, which also helps to keep your fleet safe.
Prevent Engine Idling
If not prevented, vehicle idling can be the most significant cause of fuel wastage.
- The Department of Energy reports that truck idling can consume as much as 0.8 gallons of fuel per hour.
- Additionally, idling increases the release of toxic gases into the air, which is harmful to the environment.
- Fleet admins can track engine idling with our fleet tracking software and notify drivers about excessive idling.
- Telematics provides data on how much fuel is wasted due to idling so that you can pinpoint the idling behaviour of drivers, reduce fuel, save diesel, and contribute towards sustainability.
- Using dash camera footage and reports from telematics, educate and train drivers to reduce idling and improve vehicle performance.
Set Optimised Routes
For the most part, idling is because drivers are stuck in traffic. And with manual and improper route planning, drivers spend more time behind the wheel, causing delays and excessive fuel consumption.
- Our vehicle tracking software enables fleet managers to find optimised routes avoiding traffic, roadblocks, or anything that can shorten drive time.
- With optimised routes, fleets businesses can taper fuel costs significantly, run streamlined operations, and save significant time.
- Efficient routes also reduce the wear and tear of vehicles, improving vehicle performance and lifespan.
- Real-time location tracking helps dispatch the nearest driver for the job and re-route, if needed, saving time and fuel.
Use Fuel Cards and Reduce Fuel Thefts
- Fuel cards help provide you with fuel discounts, helping companies stick to their overall fleet budget.
- Fleet admins can manage fuel and vehicle maintenance within specific budgets and keep operating costs down.
- Telematics helps managers track when and where fuel is refilled, verify all transactions, detect unauthorised purchases through fuel cards, and prevent misuse.
Advanced telematics and fleet management systems is one of the best ways to save fuel as it can help fleet companies to monitor fuel usage, identify where wastage of fuel can be prevented, and save fuel costs. This also allows them to streamline operations, deal with macroeconomic changes and improve their bottom line.