Fleet News

Driver incentives could cut fuel costs

fuel pump prices

A survey suggests that 70% of fleet drivers believe they could reduce their fuel consumption - if they were financially incentivised to do so.

The research, gathered from almost 1,000 business drivers across the UK by ALD Automotive, suggests that while driver education and training play a significant part in improving driving behaviour, more companies would benefit by focusing on incentivising their drivers to reduce cost.

Many fleets, however, reimburse drivers according to Advisory Fuel Rates (AFRs) which already offer an incentive to drivers to be as fuel efficient as possible so their costs are covered.

Nevertheless, ALD says that around two-thirds of the drivers surveyed said savings of 5-10% were possible, while one in 10 drivers believed they could reduce their fuel use by 15-20% and 3% believed they were capable of reducing consumption by a quarter.

For a typical fleet of 50 vehicles averaging 25,000 miles per annum and an average fuel consumption of 40mpg, fuel spend would be approximately £200,000 for this period.

The results of the survey suggest cost savings of £10,000 could easily be achieved by incentivising all drivers to reduce their fuel spend by 5%.

Alternatively, if around a third of drivers reduce their fuel spend by 10% this will still equate to a saving of £6,000 per annum.

Mel Dawson, managing director at ALD Automotive, said: “This survey makes interesting reading as much of the focus, historically, has been on fleet policy and adopting more fuel efficient vehicles.

“In recent years, however, we’ve certainly seen a growing interest in telematics systems and these are now at the forefront of effective fleet management.

“Telematics provides a wealth of previously unseen information to fleet managers and drivers alike.

“By using data collected from systems, businesses can set up monthly league tables for their drivers promoting more efficient driving and making it far easier to implement any fuel saving incentive schemes.”

Percentage of fuel which could be saved if financially incentivised 


Click here for fuel and fuel cards best practice and procurement insight

Login to comment


  • Spade - 19/04/2013 12:08

    anyone surprised to read this ?! Most people have been focussing on driver behaviour for a few years now. Human nature - uyes - make it worth my while and i will deliver !!

  • Bob Chambers - 19/04/2013 17:52

    Having used 2 systems to claim back my fuel, a ppm reimbursement and a fuel card the ppm reimbursement is by far the best way to incentivise drivers and save money. Say you do 1000 miles a week and your company reimburse you the Government advisory rate for an 1800cc diesel car (15p) You get back from your company £150. The cost to you to fuel the car could be around £108 = £42 saving this assumes £1.43 per litre and achieving 60mpg. I know from experience that my driving habits changed when I got a fuel card, my speed increased and I was not concerned about trying to drive economically

  • Kristen Richardson - 22/04/2013 00:56

    This is a trend that heavy haulage operators are beginning to embrace in Australia too. Great for business and great for the environment.

  • Jim Ball - 18/05/2013 23:21

    We started to use a fuel management system for our fleet a year ago, similar to the telematics device though without the navigation. We've seen massive savings since then, so much so that we've now saved enough in 12 months to pay for the entire system! This is the manufacturer if anyone's interested - http://www.triscansystems.com

  • ALIYU MOHAMMED TATA - 13/08/2013 19:39


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