How to Lower Fleet Fuel Costs

When you look at fleet expenses, most often the biggest variable cost is fuel.  While the price per gallon does have an affect, maintenance and driver behavior are also a factor.  

The Importance of Maintenance

Fuel, oil, tires and maintenance account for the top four variable expenses, with fuel accounting for 75% of the expense.  While it will vary based on region, vehicle and a mileage, a preventative fleet maintenance program will help the condition of each vehicle as well as optimize fuel usage.  Routine maintenance provides valuable data for the future of the fleet including downtime of vehicles and future management strategies.  A maintenance program can help extend the life of your fleet and save thousands of dollars throughout the year.

For example, a fleet of 500 vehicles, each driving 24,000 miles annually.  This adds up to 12 million total miles each year.  A reduction of even just a quarter of a penny per mile will equal to $30,000 in cost savings. *

Cut down on Fuel Costs

That being said, fuel still makes up 75% of the total fleet costs. However, there are a few simple ways to cut the cost of fuel down: 

  1. Fuel Only – Whatever the payment method, make sure only fuel is purchased.  Unless the proper boundaries are in place, drivers could use those payment methods to purchase food, beverage even tobacco on the company dime.   A fleet fuel card usually enables the fleet manager to limit the purchase to fuel.
  2. Capacity – If the driver is assigned a SUV with a tank of 20 gallons and the fuel transaction is 35 gallons, something is amiss.  Know the capacity of each tank in your fleet and make sure there isn’t excess on your transaction statements. 
  3. Fuel Type – Premium-grade fuel can cost as much as 20 cents more per gallon.  If your fleet vehicle doesn’t require premium, make sure your driver is using unleaded.
  4. Monitor Bad Driving Habits – Poor driving habits are not only unsafe, they can be expensive.  Monitoring bad driving habits can help fleet managers address driving habits and cut down on driver error and fuel consuming activities.

While a maintenance schedule and driver behavior are key in helping cut fuel costs, the best way is with a fleet fuel card.  The Fuelz Fleet Card is perfect for any fleet manager to track fuel costs.  Contact us today to see how a fleet fuel card can start saving your bottom line!

*Source: “How Fuel Cards and Fleet Management Programs Help to Lower the Cost of Fuel”