Diesel fuel is the only realistic choice for business-critical and high-mileage fleets, according to analysis by Pendragon Vehicle Management (PVM).
It has been a longstanding choice of fuel for UK vehicle fleets due to its exceptional fuel economy but it has come under the spotlight recently as a cause for poor air quality. This has seen some areas propose bans or additional fees to vehicles that run on this fuel type.
After analysing a typical 270-strong fleet of diesel vehicles in the construction industry against electric vehicles (EV) and plug-in hybrid electric vehicles (PHEV), PVM found that it would cost 8.5% more per annum to run a PHEV fleet than a diesel one, equating to an additional spend of £280,000 over two years. This is due to higher P11D values and the monthly rental costs, which counteract the BIK and NIC savings.
Neal Francis, divisional managing director for Pendragon Vehicle Management, said: “In recent weeks and months various press headlines have prematurely portrayed diesel vehicles in a poor light.
“Aged and poorly maintained diesel vehicles are very harmful to the environment. However, for those who change their vehicles typically every 4 years, the new diesel technology and emission standards are class-leading with the economic and environmental argument compelling.”
For workhorse fleets, EVs and PHEVs will not be the ideal choice for most, due to the high costs and limited ranges they can travel before requiring a lengthy charge. Diesel provides reliability, cost-effectiveness and can keep the vehicle moving for longer, which is a huge advantage to fleet customers.