Hello readers, as you’ve probably read the title, this article can help you to Reduce fleet fuel costs.

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Arguably the highest cost amongst all other costs for fleets is fleet-specific fuel cost. Sure, there are many other costs like maintenance, cost of vehicles, employee salary etc. but fuel is one of the major cost factors for any fleet. 

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The fuel costs have been rising day by day which makes it a big concern, especially for budgeting. The $68.17 per barrel of crude oil in 2021 rose to an average of $94.53 per barrel in 2022 and that would probably rise further in the coming future.

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Saving the cost of fuel can reduce the cost of transportation to a great extent resulting in less expenditure and hence more profit for the company/ individual.

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There are many general factors that affect the cost of fuel which affect all the people but there are fleet-specific factors like –

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1. Vehicle optimization
2. Fleet's Fuel Management
3. Non-efficient driving
4. Taking a long time to complete operations
5. Long/un-optimized route plans

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Implementing Fleet Management Software for Fuel Optimization

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One of the best ways to lower fuel costs is by simply taking the help of a Fleet Management software that helps in fuel Management. Fleet Management software can lower your fleet fuel cost by tracking routes, driver performance, vehicle health, etc.

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Route Tracking

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The fleet app tracks the route of the vehicle through the GPS system on the driver’s phone or the one installed in the vehicle. If the driver doesn’t follow the route or take the long route the system will warn the driver to be on track. This will lower the cost of fuel to a great extent. The manager can also view the current route real-time.

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Fuel Theft Security

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The software will track the receipt of the fuel card and compare it with the actual fuel refilled in the vehicle. If the two don’t match, the manager will know about fuel theft and can take further action. This will also help in separating the actual fuel cost from any other purchases the driver would have made during his stop at the fuel station.

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Driver Performance Monitoring 

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Some Fleet Management system observes every motion of the vehicle. Factors like excessive acceleration, idling (leaving the vehicle’s ignition on when not in use), sudden braking, RPM, throttle, and corning by the driver can lead to poor vehicle efficiency. So by performance monitoring, inefficient drivers can be told to focus on their specific problem through the driver scorecard and trained well.

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Vehicle Health Manager

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The Fleet Management system tracks every system of the vehicle. Alerting the fleet manager about any issue with the vehicle before it becomes a major problem which would result in poor performance of the vehicle leading to a decrease in fleet fuel efficiency.

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Maintain a fuel chart

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The system develops a fuel chart of vehicles to determine the fuel efficiency measures of each vehicle and helps the manager choose the best vehicle for the fleet from the easy-to-use fleet management app.

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Optimizing Your Fleet for the Future

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In addition to the superb cost-saving strategies you've outlined, let's explore how to future-proof your fleet by investigating alternative fuels and telematics:

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Embracing Alternative Fuels:

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• Electric Vehicles (EVs): While the initial investment might be steeper, EVs offer significant long-term cost savings due to lower electricity expenses compared to gasoline or diesel. Furthermore, government incentives for EVs can further lessen acquisition costs.
• Hybrid Electric Vehicles (HEVs): HEVs seamlessly combine electric motors with gasoline engines, delivering improved fuel efficiency over traditional gasoline-powered vehicles.
• Compressed Natural Gas (CNG): CNG is a cleaner-burning alternative to gasoline and diesel, with convenient fueling stations available in many regions.

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Harnessing Telematics for Data-Driven Decisions:

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Telematics refers to the technology that gathers and transmits data from your vehicles. This valuable vehicle data can be used to gain crucial insights into your fleet's operations and pinpoint areas for improvement.

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• Fuel Efficiency Monitoring: Closely track individual vehicle fuel consumption to identify vehicles with lower efficiency that might necessitate maintenance or replacement.
• Route Optimization: Telematics software can analyze historical traffic patterns and recommend the most efficient routes for your drivers, resulting in time and fuel savings.
• Predictive Maintenance: By monitoring engine performance data, telematics can help anticipate potential maintenance issues before they escalate into major problems, preventing unnecessary downtime and enhancing fuel efficiency.

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By effectively combining these strategies, you can adopt a comprehensive approach to minimizing fleet fuel costs and establishing a more sustainable operation.

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Some Other Ways to Cut Down your Fleet Fuel Costs

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Partnership From Fuel Providers

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Signing up for a partnership with fuel providers at a fixed rate can help in the estimation of fuel costs in advance. The company will also not face the demerits of fluctuating prices of fuel. On top of that, these providers also provide ease of payment through multiple payment methods and perks like cashback points through the fuel card.

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Choosing a Highly Efficient Vehicle

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A highly efficient vehicle will give a better result for the same amount of fuel as compared to a less efficient vehicle resulting in a reduction of fuel cost. One can either buy a new highly efficient vehicle or choose from the existing vehicles with the help of a fuel chart developed by fleet Management software.

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Choosing The Right Fuel For Your Fleet

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There are various fuels available in the market like LPG, CNG, diesel, petrol, etc. Choosing a fuel that fulfills your purpose and costs less would be ideal fuel and will reduce the fleet fuel cost. One can also use the latest fuel like electricity but the only limitation is it’s only applicable to electric vehicles.

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Reducing Fleet Size

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This can be a challenging task for a company but if implemented, it can considerably cut down fleet fuel costs, further reducing TCO.

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Providing Fuel

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Efficient driving technique to the driver, making them skilled and changing their mentality to fuel-efficient driving, resulting in the elimination of fuel wastage in a vehicle. This includes better use of gears, maintaining a steady speed, usage of the fuel-efficient tire and maintaining correct tire pressure, anticipating road conditions, refueling at the right places, etc.

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Finding shorter and better routes for transportation can be done by the fleet manager or driver through the GPS system of the fleet app.

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Using seasonal driving techniques like summer driving techniques and winter driving techniques for lowering the fleet’s fuel cost.

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In winter – the oil used in vehicles should be able to work in cold environments, idling for heating up the vehicle should be minimized, using necessary defrosters and seat warmers, etc.‍

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In summer – the driver should try to reduce the use of air conditioners because they lead to more fuel consumption and can instead opt for opening the windows whenever possible.

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To check how Simply Fleet can help you with all this and more, visit our website at simplyfleet.app