How Fuel Consumption Impacts Your Business

All businesses that work with vehicles know how important fuel is and now with the fuel rising costs even more. For a fleet to be successful as well as be a worthy component to its competitors, a business needs to get the most out of its fuel consumption and use it as efficiently as possible. 

Fuel costs represent a significant part of total fleet costs. While it is estimated that “approximately 15% of total costs are fuel costs, this can vary significantly depending on the fleet's type”.¹ Even a slight reduction in fuel costs shouldn’t be underestimated – “cutting down fuel costs by 10% can result in a 31% increase in profit”. This could make all the difference between a business “making a profit or a loss on the bottom line”.²

Knowing these facts is all well and good, but how do you work out fuel consumption and subsequently reduce it? Read on to find out what can help your business.

Commercial vehicle fleets by fuel types in Australia 

For commercial vehicle fleets in Australia, diesel remains the fuel of choice for light commercial vehicles, light rigid trucks , heavy rigid trucks, articulated trucks, non-freight carrying vehicles and buses.(3)

The types of vehicles on Australian roads have gradually changed over the years. Light commercial vehicles registration “increased by 4% between 2021-2022 (976,000 petrol powered vehicles and 3,818,084 diesel ones)”.(4) 

Comparison with New Zealand

The situation is very similar when compared to our closest  neighbour. Diesel is also the main fuel used in New Zealand’s fleets. In 2022, “there were a total of 746,931  light commercial vehicles” (158,149 petrol powered vehicles and 588,782 diesel ones).(5)

How technology can help reduce fuel consumption

Keep track of fuel consumption

A GPS fleet tracking solution generates reports, which reveal information about a business’ fleet that can be used to reduce fuel consumption. Here are four types of report:

• Fuel efficiency report: Fuel purchases are compared against certain driving events such as speeding and sudden braking to work out vehicles’ fuel efficiency.
• Fuel purchased report: The fuel bought for each vehicle is listed here for a better overview of what is being spent so it is easier to work out fuel consumption in trucks.
• Lost fuel report: Reveals fuel purchases that cannot be accounted for such as if a fuel card is used without the actual vehicle being present or if a larger amount of fuel is bought than what a vehicle’s tank can handle.
• Carbon footprint report: The carbon footprint of each vehicle is measured and revealed in this report. Fleet managers can then see how important it is to reduce fuel consumption in trucks.

Choose the best routes

The software enables businesses to plan better and select optimal routes in order to cut down on fuel wastage. Maps show the location and end destination of every vehicle for a better overview. Traffic, weather, and other eventualities are monitored so drivers can be quickly rerouted if needed. 

Improve driver behaviour

Idling, accelerating quickly, and braking harshly are all causes of wasted fuel. Customisable driver behaviour reports show where and when this reckless behaviour takes place. Automatic text or email alerts can also be set up that notify managers of bad driving.

A decreased fuel consumption isn’t the only benefit of a fleet tracking solution. Here you will find additional advantages of a fleet management solution.

You no longer have to be kept in the dark about ways of how to reduce fuel consumption. Fleet management technology helps you get a better overview of your business and enables you to stay competitive and sustainable. Discover more about fleet management software and get a demo by visiting https://www.verizonconnect.com/au/


Sources:
(1-2) https://www.idae.es/sites/default/files/documentos/publicaciones_idae/documentos_10232_guia_gestion_combustible_flotas_carretera_06_32bad0b7.pdf
(3- 4) https://www.bitre.gov.au/sites/default/files/documents/BITRE-Motor-Vehicles-Australia-2022-FirstIssue.pdf

(5) https://www.transport.govt.nz/statistics-and-insights/fleet-statistics/sheet/monthly-mv-fleet

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