As you are aware, fuel is normally the second largest expense for fleets, after depreciation. The cost of fuel can be around 33% of total expenditure. By reviewing purchase procedures and implementing some basic strategies, the potential for serious savings on your fuel. For a fleet of 100 vehicles and an average pump price of $1.20 cpl, a 10% improvement in fuel efficiency can be equivalent to the annual cost of two vehicles.
Here’s some serious ideas that can help you to slash your fleet fuel cost.
Control of your fuel cards is important to prevent fraud. You can start with an audit of all cards on your account. Are they allocated to a vehicle or a person? Is the vehicle still on your fleet? Do they have PINs? Are there reasonable daily or monthly limits in place?
Fuel theft is something that happens every day. Cards can become lost, misplaced fuel cards and employees may steal one tank for their personal car or a lawn mower. Criminals will steal thousands of litres if the right limits and controls aren’t in place.
You shop around for better deals on your, insurance, servicing and a host of other expenses. Why not shop around on your fleet card? With higher margins in the fuel market, you may be able to negotiate a better deal on every litre of petrol your purchase for your fleet.
Poor drivers increase fuel consumption by 21% when compared to average drivers; and by 31% when compared to good drivers.
Education is the first step to improving your drivers’ habits. Many drivers aren’t aware of the financial impact their driving style is having on the organisation. A little research can provide some information you can circulate to your fleet drivers. It may help.
If you want bigger savings across multiple areas, provide driver training. You’ll not only improve their driving style, you’ll save money on fuel, wear and tear, accidents and personal injury. Adding up a huge cost saving every financial year!