Innovative Ways to Cut Fuel Costs

Innovative Ways to Cut Fuel Costs
Posted by PS Energy Group on

With fuel prices and environmental concerns rising, managing fuel costs and fuel efficiency is a top concern for fleet managers regardless of fleet size or application. Fuel is the second largest total cost of ownership after depreciation — on average, 60% of a company’s fleet operating budget. As a result, managing fuel expenses is crucial to keeping fleet budgets under control and operations running efficiently and profitably.

Many factors beyond human control contribute to the rising cost of fuel, including:

  • The fluctuating cost of crude oil
  • Global economic outlook
  • Supply and demand imbalances
  • Disruptions in crude oil supplies, refinery operations, or gasoline pipeline deliveries
  • Distillate fuel demand and seasonality
  • The distance between the retail locations and supply sources
  • Local market conditions and locations and ownership of retail outlets

While fleet managers can’t control these factors, they can implement innovative and effective strategies that cut fuel costs and promote efficiency and sustainability.

Let’s take a look at five top strategies to consider.

Route Optimization

Using GPS technology and route optimization software to plan the most efficient driver routes can significantly reduce fuel consumption. Fleet managers can identify the least congested and shortest routes, which minimizes idling time and miles traveled. GPS technology also optimizes delivery schedules, saving time, reducing fuel consumption, and improving customer service. 

Vehicle Maintenance

Regular maintenance is crucial to optimal fuel efficiency. By performing simple tasks, including keeping tires properly inflated, maintaining clean air filters, keeping up with oil changes, and staying on top of regular service schedules, fleet managers can improve gas mileage and immediately catch mechanical issues that contribute to fuel inefficiencies.

Consider telematics to automate maintenance and improve workflow. Telematics provides fleet managers with vehicle data, such as the health status of vehicles, the ability to conduct preventive maintenance based on odometer readings, and the ability to streamline maintenance work at times that are the most convenient and efficient.

Driver Behavior/Training

Drivers have a significant impact on fuel efficiency. To that end, educating drivers about fuel-efficient driving practices such as gentle acceleration, maintaining steady speeds, and avoiding excessive idling can lead to significant fuel savings — as much as 30% at highway speeds and up to 40% in stop-and-go traffic.

Using dash cams and telematics takes driver education to the next level by providing fleet managers with detailed insight into unsafe and fuel-wasting driving behaviors. The most effective dash cams and telematics systems proactively reduce risky behaviors by alerting drivers in real-time when a behavior occurs, so it can be immediately corrected.

Data collected from devices helps fleet managers monitor fuel economy, benchmark fuel performance, and identify opportunities for improvement. Additionally, data provides “proof” fleet managers can use to incentivize drivers for fuel-efficient driving behaviors, such as recognizing top-performing drivers or offering bonuses based on fuel savings, which fosters a culture of efficiency within the fleet.

Fuel-Efficient Vehicles

Upgrading to vehicles that deliver better fuel efficiency can lead to long-term cost savings. Investing in hybrid or electric vehicles or selecting models with fuel-efficient engines reduces fuel expenses and lowers carbon emissions. While the initial investment may be higher, the fuel savings over the vehicle's lifespan often outweigh the upfront costs.

If investing in new vehicles is cost-prohibitive, tractor upgrades or simple equipment adjustments can help conserve fuel. Low-rolling resistance tires, aerodynamic components, and engine accessories are proven solutions to reduce air drag and improve fuel economy.

Fleet Cards

Fleet cards offer gallon discounts that reduce fuel costs at the pump and provide advantages that add up to substantial cost savings beyond the pump. These include:

  • Purchase controls, reporting capabilities, and individual driver PINs to prevent fraud or misuse
  • Customized and automated reporting that allows real-time monitoring and tracking of spending
  • Detailed transaction data for expense tracking of individual vehicles or drivers, which streamlines tax reporting and helps substantiate tax deductions
  • A large network of fuel providers so drivers don’t waste time and fuel looking for an accepting fuel location
  • Discounts on vehicle maintenance repairs and other related services

Cutting fuel costs doesn’t always require complex solutions. Implementing innovative solutions can have a huge impact on driving fuel costs down. Humans can’t control the rising cost of fuel. But fleet managers in the know about fuel price cutting strategies can tame the effect of rising fuel costs on the bottom line, benefitting both business operations and the environment.