What can a fleet manager do in the face of rising fuel prices?

With fuel prices at record highs, reducing fuel consumption has become a top priority for managers. Geotab has several tools in its portfolio that provide simple and effective solutions.

If in normal times fuel consumption is one of the main concerns of fleet managers, in current times it has become a top priority.

In recent weeks, the price of a litre of petrol and diesel has risen to record highs day after day.

Gone are the allusions to September 2012 as a reference of high prices, when the litre of petrol exceeded one and a half euros. Official media point out that, in recent days, there have been dozens of service stations where petrol 95 and diesel A (the most popular fuels) exceed the threshold of two euros per litre.

As a result, filling up a 50-litre tank costs, on average, 20 euros more than a year ago. An increase that could mean that the accounts of many companies are starting to become unbalanced…

Fuel accounts for 60% of costs

Fuel is the largest and most resource-intensive item in a company’s mobility budget.

Our experts at Geotab estimate that fuel represents 60% of a fleet’s operating costs. That is why optimising the resources allocated to this item is one of your main responsibilities.

Optimising routes

How many kilometres do your cars drive each day/week/month, do they drive the fastest or the shortest route, how often do they refuel and where do they refuel?

A thorough knowledge of each and every journey will allow you to optimise your routes.

Perhaps the same vehicle can cover two jobs by adding a few kilometres to its route sheet; or another vehicle may not be taking the most efficient route.

Preparing routes in advance, taking into account traffic reports, will help to avoid areas with roadworks or restrictions, minimise idling, reduce the risk of sudden braking and shorten driving time.

Efficient driving

Eco-driving is a method of driving a vehicle with the aim of using less fuel and having less impact on the environment.

It is the driver’s responsibility to maintain a responsible attitude at the wheel, both from a safety and efficiency point of view.

Geotab helps to internalise both concepts through driver behaviour reports that display on the My Geotab platform data relating to speed, rest times… to establish a profile of each driver and draw up a personalised improvement plan.

Telematics to reduce fuel consumption

Private drivers can put into practice some tips to reduce fuel consumption. Some reports claim that simple gestures such as looking for the cheapest service station, taking into account the day of the week (Fridays are the most expensive) or implementing efficient driving habits can save up to 10 euros per tank.

Professional drivers who apply these principles can also contribute to improving their companies’ balance sheets, but it is up to managers to develop improvement policies at a higher level.

And this is where, just as a few weeks ago we told how telematics can help to create a company with a safe mobility label, data transmission tools can be of great help to managers.

(Perhaps) the time has come to make the leap to electric mobility.

Rising fuel prices are once again putting the possibility of renewing their fleet of vehicles on the table for many companies by replacing the more fuel-intensive ones with electric models.

“Electricity is also at an all-time high”, some sceptics will reply. For them, the best proof is in the numbers.

The formula for calculating the fuel consumption of a combustion car is simple: price per litre of fuel x litres that fit in the tank.

In the case of electric cars, the operation is: battery capacity (kWh) multiplied by the price of electricity (euros/Kwh).

On the one hand, we take as a reference the highest average price of electricity for the third week of March (0.4051 euros/kWh) and a model with a 64 kWh battery. On the other hand, a diesel vehicle with a 42-litre tank and the average price of diesel (at the time of going to press, 1.90 euros/litre).

Electric car Combustion car
30,087 euros* 79,8 euros

The calculation of the electricity cost must be qualified as it depends on the time at which the recharging is carried out. The cost can be much lower if the batteries are recharged during off-peak hours.

To accurately calculate these savings and to know which vehicles in a company’s fleet are suitable for renewal, Geotab provides managers with its electric vehicle adoption tool (EVSA).

Through an in-depth analysis of the mobility of the fleet, the telematics tool provides information on the real needs of each company, advising managers which units to change and even which models on the market are the most suitable.

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