For many businesses, fuel is an unavoidable and significant expense. The unpredictable nature of fuel prices can make it difficult to manage with fluctuating profit margins, inconsistent monthly fuel costs, and increased frustration.
Why do fuel prices fluctuate?
Several factors can dictate the price of fuel, including:
- Global crude oil prices
- Currency exchange rates
- Geopolitical events, such as conflicts, trade disputes, or sanctions
- Fuel duty and VAT charges
While elements like fuel duty and VAT charges tend to be fairly stable, other factors, particularly global oil prices, are highly sensitive to shifts in the global economy and political landscape.
So, how can businesses safeguard their fleet against the effects of fluctuating fuel prices?
Focus on the controllable factors within your fleet
Utilise fuel cards for better fuel management
First and foremost, gaining control over your fuel spend provides valuable insight into areas where your business can improve fuel efficiency. Fuel cards offer a safe and secure way for drivers to pay for fuel while streamlining your administrative workload with HMRC-compliant invoices and a 24/7 online account portal. Additionally, fuel cards provide detailed data on where and how often your fleet is refuelling, giving you the tools needed to optimise fleet management and reduce overall fuel costs.
At Cambrian Fuelcard Services, we offer fixed weekly pricing so you can have greater control over your fleet’s fuel expenses, streamline budgeting, and mitigate the uncertainty of variable fuel costs. This stability allows you to plan more effectively, ensuring your operations remain cost-efficient and your bottom line stays on track.
Optimise route planning
One of the most effective, yet often overlooked, ways to reduce fuel costs is by optimising your routes for maximum fuel efficiency. What makes a ‘fuel-efficient’ route can vary depending on the vehicle type. For example, HGVs typically perform better when avoiding steep inclines, while smaller vehicles might benefit from these routes if they result in a shorter overall journey.
To take route planning a step further, you can leverage real-time data through telematics software. This allows your drivers to avoid traffic, reduce delays, and improve fuel efficiency by minimising idling time, as well as providing a more reliable service for your customers. Telematics also provide deeper insights into fleet operations, enabling you to further your fleet’s efficiency.
Improve driving practices
Driving behaviour is a major factor in excessive fuel consumption. Habits like frequent stops, speeding, rapid acceleration, and harsh braking can all add up, significantly increasing fuel usage and driving up company fuel costs.
This is another area where telematics can make a difference. By monitoring and analysing the driving habits of your fleet, you can gain valuable insights into areas for improvement. With this data, you can implement any additional training or support needed to help drivers adopt more fuel-efficient driving practices, ultimately reducing fuel consumption and cutting costs.
Take better care of your vehicles
Finally, implementing a preventative maintenance plan for your fleet can help to keep vehicles running smoothly and contribute to better fuel economy. Carrying out regular maintenance tasks, such as oil changes, tyre pressure checks, and air filter replacements, are key to maintaining optimal performance and maximise fleet efficiency.
Investing in higher-quality fuel for your vehicles can also help reduce fleet maintenance costs over time. While premium fuel may come at a slightly higher price, its positive impact on your vehicle engines could lead to improved fuel efficiency, longer engine life, and enhanced overall performance. In the long run, the improved reliability and reduced repair needs make it a smart investment that can deliver significant savings. At Cambrian Fuelcard Services, we have partnered with industry-leading brands, such as Shell and Texaco, to provide our customers with high-quality fuel options.
Closing Thoughts
Managing fuel costs is an ongoing challenge for many businesses, but it’s not one that is entirely out of your control. By focusing on the factors you can influence, such as optimising route planning, adopting better driving practices, and the use of fuel cards, you can significantly reduce fuel consumption and mitigate the impact of fluctuating fuel prices.
With proactive strategies in place, you can protect your bottom line and ensure your fleet remains as efficient as possible.
Useful Links
To apply for our fuel card services, click here; https://www.cambriancards.com/apply-now/online-fuel-card-application/
To apply for telematics solutions, visit here; https://www.cambriancards.com/online-application-for-telematics/
For more information on developing a preventative maintenance plan for your fleet, read our blog here; https://www.cambriancards.com/stay-ahead-in-the-new-year-how-to-create-a-preventative-maintenance-plan-for-your-fleet/
