Fleet News

Fuel crisis: make big fuel savings with a five-point plan

WITH the cost of fuel at the pumps racing towards £4 a gallon, an increasing number of fleets are looking at ways to offset the budget-busting price rises. Warnings have also been sounded that the country could see a repeat of the 2000 fuel protests which could push prices up further and also lead to shortages.

During those protests, fleets were caught out and many drivers had to leave cars at the side of the road when they failed to find fuel.

Decision-makers are being urged to prepare early to offset the price rises and deal with potential supply problems with a number of important tactics.

A simple five-point plan to set a framework for their fuel management is a key starting point to reduce fuel use and waste.

These include combating fraud to avoid wasting fuel, reducing unnecessary mileage, penalising drivers for achieving poor fuel economy, weeding out vehicles that achieve poor fuel economy and ensuring drivers keep a look out for low fuel prices.

It has been produced by a leasing company which says the majority of fleets fail to introduce fuel management policies.

Mike Reed, operations director at contract hire and leasing firm GE Capital Fleet Services (GECFS), which is behind the recommendations, said: 'Many fleet managers, even some very good ones, have the attitude that fuel costs are basically uncontrollable.

'In fact, while fleets clearly cannot have much influence over pump prices, they can have a worthwhile impact on what their organisation spends on petrol and diesel.

'Any fleet that puts some or all of these five measures in place should mitigate some of the worst effects of rising fuel prices. The signs are that diesel and petrol prices could stay high for quite a while to come, so taking direct and effective management action is very important.'

Fleets have already been warned that regional pricing variations for fuel have created a fuel price lottery.

Castle Fuel Cards has encouraged companies to urge their drivers to seek out the cheaper filling stations when filling up.

The company estimates that a 200-strong car fleet operating in the Midlands could cut its typical fuel bill of about £330,000 by nearly £14,000 (4.2%) if it pushed drivers towards lower-priced outlets, such as supermarkets.

'Fleets are playing a postcode lottery whenever their drivers stop to refuel,' said Teresa Maynard, head of fuel at Castle Fuel Cards. 'Even so, they can play the game to their advantage by making sure their drivers always aim to buy below the average price.'

Fleets will not just have to deal with high prices at the pumps over the next few months. Experts warn it will be a 'difficult summer' as motorists have warned they would back fuel blockades that mirror demonstrations in 2000 that brought much of the country to a standstill, when the price reached 85p a litre.

There were go-slow convoys on motorways and oil refineries were picketed to prevent the delivery of supplies to petrol stations.

The UK Petrol Retailers' Association has predicted prices will continue to rise in the forecourts over the summer.

Oil prices were pushed higher towards breaking point last week as traders reacted to a terrorist attack in Saudi Arabia which targeted western oil workers.

Although more expensive crude oil does not inevitably lead to a similar rise in petrol costs, it is believed that, at present levels, oil prices point to a 10% rise in the cost in petrol in the short term.


Best practice driving

DRIVE more economically or choose alternative transport. That was the message from Motor Show Live in Birmingham, where rocketing fuel prices are concerning the manufacturers. For drivers, the show produced five best-practice suggestions:

  • Driving style: Reduce speed and drive smoothly. Anticipation can avoid sudden braking and sharp acceleration. Gentle driving can reduce fuel consumption and emissions by more than 10% in urban areas. Using the correct gear, changing up early and driving in the highest practical gear is an efficient way of driving and can reduce fuel consumption by up to 25%

  • Use of accessories: Switch off unnecessary accessories such as the rear screen de-mister or seat heaters. Unnecessary use of air-con can increase fuel consumption by up to 10%, it is estimated

  • Weight and wind factors: Unload excess weight. Removing items such as roof racks will cut down wind resistance and decrease fuel consumption

  • Maintain your vehicle: Regular servicing can help minimise fuel consumption and emissions, as can keeping tyres inflated to the correct pressure. Under-inflated tyres can increase fuel consumption by up to eight per cent and can be dangerous

  • Driving - think about it: Switch off your engine whenever it is safe to do so while stationary. Fuel economy in prolonged and unnecessary idle will be zero mpg. Put off unnecessary journeys and combine trips.

    Fuel cost action plan

  • Don't allow fuel fraud: Any fleet that doesn't issue a fuel card to drivers leaves itself open to fuel fraud. If a 'pay and reclaim' receipt system is used, drivers can easily fill up their spouse's vehicles. GE CFS warns that where no controls are in place, at least some fraud is happening. 'If you do use pay and reclaim, ensure that the receipts that you process match up to the journeys made by your drivers,' the company advises.

  • Stop unnecessary mileage: An easy way to cut fuel costs is to use less fuel. Make sure that journeys being undertaken in company vehicles are really necessary. Also worth investigating are measures such as whether two drivers travelling to the same destination could share a car? One step could be to make line managers responsible for justifying journeys.

  • Penalise heavy right feet: Some drivers use a lot more fuel than others simply because their driving style is clumsy. If you use a fuel card or fleet management software, you'll be able to see which drivers on your fleet average the worst fuel consumption and take appropriate management action. Driver training could be used as a solution.

  • Weed out rogue vehicles: In the same way that some drivers use more fuel, so do some cars. It is not unusual to find a variance of 2-3mpg or even more in seemingly identical cars. Again, if you use a fuel card or fleet management software, data available to you will allow the identification of rogue vehicles and allow you to check for any mechanical defects.

  • Don't pay the highest prices: This is perhaps the most obvious point. Fuel prices across the UK often vary by more than 10 pence per litre. Monitor fuel prices regularly and ensure that the average price you pay is as low as possible. An easy way to do this is to guide drivers towards supermarket filling stations.

    Source: GE Capital Fleet Services

  • Subscribe to Fleet News.
  • Get the news delivered to your desktop
  • Leave a comment for your chance to win £20 of John Lewis vouchers.

    Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

    Login to comment


    No comments have been made yet.

    Compare costs of your company cars

    Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

    What is your BIK car tax liability?

    The Fleet News car tax calculator lets you work out tax costs for both employer and employee