- Fleet managers are under pressure to cut fuel costs as recession fears grow and small business confidence continues to drop.
Since Ryan founded Catalyst for Business, we’ve been helping companies adapt to tough financial conditions. You have to be smart with every dollar right now, especially when it comes to running a fleet.
The NFIB tracking small business optimism reported their index fell to 95.8 in April, which is below the historical average of 98. It is becoming harder for small companies to feel confident about the future, and many are reacting by pulling back on spending. Keep reading to learn more.
Fuel Costs Are Draining Fleets
You may already know that fuel is one of the most expensive line items for fleet operations. There are few ways to avoid it, especially for logistics-heavy companies that rely on constant movement. It is no surprise that fuel savings often become the first goal when companies need to cut costs.
Last month, LegalShield shared findings showing that 94% of small business owners and managers are worried about a potential recession. You can see how these fears push companies to look for budget cuts wherever possible. There are not many areas with quicker returns than fleet spending.
The average owner-operator uses 15,538 gallons of fuel every year, according to multiple tracking sources. You are looking at roughly $9,192.28 in diesel taxes alone, and that doesn’t even touch actual pump prices. There are very few other expenses that scale so steeply with business activity. It is hard to grow if your cost per mile keeps climbing.
There are companies now investing in route planning and idle-time tracking just to keep fuel costs manageable. You might be surprised how much money is lost through poor logistics or unnecessary miles. It is often the case that businesses don’t realize how bloated their fuel use is until margins start disappearing.
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For any business that relies on a fleet, fuel is one of the biggest ongoing expenses. After all, it’s a necessity for getting your vehicles from A to B. That’s why many try to reduce their fuel costs to save on their overall expenses bill.
The good news: cutting fuel costs is a realistic scenario. It also doesn’t have to mean overhauling your entire operation or compromising service quality.
In fact, with just a few simple changes, you can make a noticeable impact on your bottom line and keep your team moving efficiently. From smarter driving habits to using technology which refines route planning, there are practical steps every fleet can take to reduce fuel waste.
This guide covers six straightforward, effective ways to lower fuel spend across your fleet.
1. Encourage Better Driving Habits
It’s no secret that driver behaviour has a direct impact on fuel consumption. Harsh acceleration, speeding, excessive idling – all these points waste fuel unnecessarily.
As a result, it also shouldn’t be a surprise that encouraging smoother, more consistent driving can reduce fuel use. What is surprising, however, is that is can reduce it by as much as 40%. To first build awareness and accountability, you can conduct regular training sessions and coaching based on performance data.
To get your drivers more on board, think about offering incentives for economical driving or set up internal competitions to reward efficient habits. It’s also worth educating drivers on anticipating traffic flow and reducing unnecessary braking. Small changes, yes, but when multiplied across your fleet, they can deliver significant savings.
2. Optimise Your Routes
Longer distances. More traffic delays. Extra fuel burned. These are the issues that crop up with poorly planned routes.
Fortunately, there are effective ways to avoid such problems. As an example, you can use route optimisation software to plan the most efficient paths that factor in elements such as live traffic updates, road closures, and delivery time windows. Don’t underestimate how even cutting a few miles off each trip adds up quickly when managing multiple vehicles.
There are other advantages gained from automated route planning. It reduces driver stress and delivery delays, for instance, to create a more predictable, fuel-efficient workflow.
3. Use Vehicle Telematics
Telematics systems offer a data-driven way to enhance fuel efficiency across your fleet. With real-time vehicle tracking and performance monitoring, you can identify exactly where fuel is being wasted.
These insights assist you in taking targeted action, such as:
- Set idle time alerts
- Monitor fuel consumption trends
- Coach drivers based on actual driving patterns
- Detect underperforming vehicles
- Schedule preventive maintenance to avoid costly breakdowns
By using telematics, you’re not guessing. Instead, you’re making informed decisions which lead to consistent fuel savings across the board.
4. Maintain Your Vehicles Regularly
As you know, a well-maintained vehicle runs more efficiently and burns less fuel. The likes of worn tyres and even dirty air filters all reduce fuel economy. Tyre pressure alone can have a big impact for instance. Underinflated tyres create rolling resistance, and this situation forces the engine to work harder.
To avoid such problems, set a strict schedule for routine checks and preventive maintenance to keep your vehicles performing at their best. Also, to better improve your maintenance efforts, encourage drivers to report issues such as unusual sounds, warning lights, and performance issues early.
5. Cut Down on Vehicle Idling
Excessive idling is one of the most avoidable causes of fuel waste. Just a few minutes of idling a day, particularly across a fleet, can amount to hundreds of litres of wasted fuel per year.
Train drivers to turn off engines when waiting for more than a minute or two. This should be an obvious step to take during deliveries or at depots. To help with this situation, some modern fleet systems can automatically alert managers or drivers when idle time exceeds set thresholds.
6. Review Vehicle Choice and Load Management
Fuel efficiency doesn’t stop at the wheel. It also depends on what your vehicles are carrying, as well as how suited they are to the task.
Regularly assess whether your fleet is fit for purpose. Are you using large vans for light loads? Could certain trips be consolidated? Ultimately, overloaded or poorly packed vehicles require more power – and that means more fuel.
It’s also recommended to select vehicles with better MPG ratings or hybrid options when updating your fleet. Think about it: even small upgrades to vehicle specs can make a measurable difference in long-term fuel usage and cost.
