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July 8, 2024
Fuel expenses are a major concern for trucking companies.
Fuel remains the second-largest fleet operating expense – with depreciation being the first.
As fuel prices fluctuate due to changing crude oil prices, reducing these expenses can be crucial for every fleet manager.
Though the cost per gallon cannot be predicted or controlled, there are factors influencing fuel expenses that can be managed effectively.
Here are three fuel-management strategies that could help reduce costs:
Get cheaper fuel
Seek cost-effective fuel suppliers to save on gas prices.
Mobile fueling services can bring fuel directly to your fleet, reducing unnecessary stops and streamlining expense tracking.
This will also help decrease expense tracking by dropping the number of different gas prices and fueling locations you will need to track during the year.
Use fleet fuel cards
Implement fleet fuel cards to simplify fuel management.
These cards allow for better control over employee spending by monitoring all fuel purchases in real-time reporting.
They also set limits on gas stations, frequency of fueling, purchase times and fuel amounts per visit to manage expenses effectively.
These types of detailed purchasing controls help better manage overall company fuel expenses and allow for accurate budgeting estimates and adjustments in credit limits when needed.
As a bonus, many fleet cards used today offer additional fuel discounts and special promotions.
Be aware of fuel fraud
A recent survey from trucknews.com showed that as much as 5% of a transportation company’s total annual fuel spend might be wasted on fuel fraud.
The misuse of company fuel cards or falsified fuel expenses can lead to significant financial losses, especially when fuel accounts for as much as 60% of the fleet’s operational budget.
To help prevent some of these issues:
- Implement strict policies
- Conduct audits
- Invest in fuel management technologies
- Take disciplinary actions
- Train employees on fraud prevention to deter fraudulent activities and protect your business
In conclusion
Applying some of these strategies and knowing you have the right data monitoring your fuel usage can help your company reduce any unnecessary expenses and increase savings at the pump.
