Managing your expenses in a volatile world is challenging at best. When your business revolves around external pricing stressors like fuel costs, your efforts to achieve profitability can seem to have little effect on the bottom line. According to the U.S. Energy Information Administration, diesel gasoline prices have increased nearly 50% over the past year (August 2022 versus August 2021). Controlling fleet costs is easily one of the biggest obstacles to your company’s success over the next few years.
Your business can’t wait for you to sit around and hope fuel costs will come down, either. Your trucks and equipment must keep moving regardless of the petroleum economy’s state. However, there is some good news. GP Energy can help you expand your profitability by better managing the whole cost of refueling–and that extends far beyond the price per gallon.
While the average cost of a gallon of diesel fuel in August 2022 was $5.01, you know your total costs are far greater than that. A wise business leader must also consider:
- Labor costs and time spent refueling,
- Wasted fuel from inefficient driving and poor maintenance, and
- Losses from thefts and unauthorized use.
Working with an experienced professional like GP Energy will help you manage your costs in each of these areas. Here are a few ways our team can partner with your organization to contain all these costs and get in the fast lane to achieving your financial goals.
Labor Costs and Time Spent Refueling.
The Bureau of Labor and Statistics reported an average hourly wage of $17.62 for delivery truck drivers in 2021. If one of your drivers spends 15 minutes driving to a refueling station, another 15 minutes filling up, and 15 minutes getting back on route, a tank of gas costs another $13.21 over the cost of the fuel. If a driver refuels once daily, that’s an extra $3,436 annually for every driver in your fleet. If you’re paying above the national average, those costs will climb accordingly.
Route optimization technology solutions will help your company minimize refueling time to reduce costs. Managers select refueling stations with negotiated pricing contracts or lowest cost options, and navigation software calculates the best route to save the company money. Drivers don’t need to waste time figuring out where to stop for gas or how to find a location to fill their tanks.
Wasted Fuel from Inefficient Driving and Poor Maintenance
Did you know fuel economy decreases for speeds over 50 miles per hour? The U.S. Department of Energy calculated the additional costs for light duty vehicles as an extra 6.8% of fuel cost for every 5 mph over 50 driven. If your driver travels at 65 miles per hour and diesel fuel is $5.00 per gallon, the reduced efficiency is equivalent to spending an extra $1.02 per gallon of fuel. Fleet management software can be used to limit how fast your fleet drivers speed and keep those costs in check.
There are other easy ways to ensure your fleet is operating efficiently. For example, ensuring extra equipment or freight isn’t hauled around unnecessarily will keep vehicle load weights down and fuel efficiency up. Regular tire pressure checks and keeping tires inflated to proper levels can improve gas mileage by up to 3%. Best of all, fleet maintenance software solutions can help manage these aspects and more. Your fleet managers can easily track and review all the maintenance performed on each vehicle and receive handy alerts to signal when vehicles are due for servicing. Today’s technology will even automatically monitor aspects of your fleet like tire pressure so you don’t have to.
Losses From Theft and Unauthorized Use
Misuse, slippage, and fraud are all risks fleet owners must manage daily. Some losses occur when employees use corporate accounts to purchase fuel for personal vehicles or siphon gas from company vehicles. Other risks aren’t associated with employee behavior, but rather with external perpetrators who steal card information for illegal purchases.
Cardlock programs are very effective in reducing these risks. Onsite refueling stations with cardlock technology provide companies with the highest level of flexibility for price savings and data security. Or, cardlock programs attached to nationwide networks of retailers come with the advantages of negotiated prices and account oversight. Card software allows managers to set purchase limits, set alerts, review reports, and activate or deactivate cards in seconds.
Learn more about how GP Energy can help you with controlling fleet costs.
We will identify effective strategies for controlling fleet costs and achieving the financial results you’re striving for. Our professional team works with business owners like you to implement plans to achieve success. Whether you are hoping to expand your unbranded business by adding car wash facilities or expanded meal options, or you want to convert your business into a branded fuel facility, we have the expertise to guide you through the entire process. Our goal at GP Energy is to make crossing the finish line of goal achievement easily within your reach. Contact us today to get started!
