Blog
How to reduce your business fuel costs
Posted 19 November 2015 | 
| 0 Comments
November is the peak month for fuel usage, as retailers stock up for Christmas and internet deliveries ramp up. Consumers use more fuel also, as what was a walk becomes a car trip in the cold and rain. The relatively low fuel prices have also meant that usage has increased. However, there remain the usual calls for fuel duty to be reduced or at least frozen and the forecast benefits that this will bring the British economy.
If you look at the figures, it is easy to quantify savings, based on any cut in duty. A small business with 6 vehicles, using 1500 litres per month would save around £180 per year on a 1 pence per litre (ppl) duty reduction. Obviously with a larger fleet, this becomes 000's and an immediate quick win, but as a percentage of running costs it is a drop in the ocean.
There are other factors which can save businesses far more than 1ppl, but tend to be ignored in small businesses, as it is easier to moan at the government than take control of your fuel spend - so here are a few simple tips to get you started in having a company fuel policy.
1. Do I have the appropriate vehicles for the business? Not a quick win, but how many times are large vans sent out less than half full, when the load would be carried in a maxi van or smaller. Can you replace some of your fleet with smaller more efficient vehicles?
2. Do I have a fuel card, which is convenient as it saves me money?
3. Do I monitor fuel efficiency and run mpg reports - it's easy, just have the vehicles full at the end of the last day of each month, record fuel purchases and get the start & finish mileage. A spreadsheet later, you will have mpg figures for each vehicle to use to:
- Compare similar vehicles efficiency
- Use as a benchmark to improve
- Use to help purchasing decisions on vehicles
- Monitor driver performance
- Identify possible fuel theft - who drives a diesel car, who carries a fuel can?
A van is designed to travel at 56mph with a load on board, but one travelling at 90mph uses 50% more fuel. If a driver filled up and paid 180ppl, when others paid 120ppl, you wouldn't be happy, but it would cost the same as driving at 90mph. Sensible driving will save on wear & tear in brakes, tyres & reduce the risk of accidents and the costs of a vehicle off the road.
4. Unnecessary journeys - 30 miles per vehicle per week adds up to around £300 per year, so going out of your way to buy 'cheaper' fuel, is costing you money and time. Telematics can help drive fuel efficiency, but adds a cost, but should give net savings.
5. What simple things can I do to reduce fuel spend?
- Lighten the load - we all carry extra things that we don't need
- Roof/ladder racks increase fuel use - do you need them?
- Tyre pressures - check them. Incorrect tyre pressures will cost 2% in extra fuel
Reducing fuel spend is not rocket science and by getting a BSA Fuel Card, you can monitor your fuel spend by vehicle, get a highly competitive rate on diesel at stations convenient to you. We could have saved you 4ppl on average UK pump prices in November.
by H Burton | 19 November 2015
