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How to curb fuel spend in 2019?

It has been observed that the fuel prices have been on the rise for the last two years. As reported by Saudi Aramco, conventional retail gasoline prices of Octane 95 is to rise to 2.10 Riyals from 2.02 Riyals last quarter and Octane 91 to 1.44 Riyals from 1.37 Riyals per liter. When the fuel economy accounts approximately 30%-40% of your fleet’s total operating costs than it is the time for fleet managers to be more cognizant than ever before.

While variety of factors play their part in fuel economy including vehicle selection, weather, route chosen, road conditions but the factor that majorly impacts on the consumption of fuel is the behavior of your driver on road. Driver behavior depends on idling, speeding, harsh braking and harsh acceleration. 

Choosing the right vehicles for fleet incorporation that best fits the need of your organization is as vital as correct driver behavior. Moreover, the fleets should consider rightsized vehicles to have a better fuel economy. A change in consumption of fuel can be seen if the fleet size is changed as per need. According to the fleet manager of a private firm: they have seen a visible change in the pattern of fuel economy when they have reduced the fleet size in the area of low utilization and increased the fleet size in the area with high demand. This utilization of assets has overall better impacts on fuel economy. Eagle-I helps you in utilizing your assets by its assets management module. To know more about this click here.

Fuel economy cannot only be improved by incorporating the right vehicle in your fleet but how it has been utilized is equally important. The utilization of your asset depends on the behavior of a driver. Do you know what grade of fuel is being filled in your vehicle? Or the fuel tank of your vehicle is overloaded beyond the capacity?  So for better control of your fuel economy, you need to monitor the driver behavior. The choice of driver for the inefficient route, excessive idling, and frauds have a great impact on fuel spend.

Excessive idling has been a common concern of many fleet managers. To elucidate the problem, one needs to identify the reason for idling: whether it be the problematics drivers who need to be trained or the fleet policy that needs the modification which defines the idling threshold. No matter what the case, Eagle-I helps you in monitoring the idling of your vehicle and helps you to control it. To know more about this click here!

Another factor that needs to be taken into account is aggressive driving. Aggressive driving includes speeding, harsh braking, harsh acceleration, harsh corning. According to U.S Department of Energy aggressive driving can lower your gas mileage by roughly 15% to 30% at highway speeds and 10% to 40% in stop-and-go traffic.

Fuel economy can also be improved by using another modern day technology. By modern day technology, we mean the telematics solution. With the evolution of telematics, it can be a business differentiator for those that embrace the technology and mine the data for actionable events. Telematics solution offers the implementation of fuel card. Fuels cards can consist of different levels depending on the data obtained and their analysis. With fuel card you can get information about the gasoline station address, quantity purchased, fuel grade, date/time, PIN. Besides the implementation of fuel card, fleet managers should opt for fuel management strategy in an organization. This strategy may include the push notification for drivers to lowest cost fuel options based on their location, reduce idle time percentages by asset type and function.

But beyond what fleet vendors and suppliers can offer, contemporary vehicle technologies are also something that fleet managers might want to consider when looking to curb fuel spend. Modernizing your fleet with updated vehicle technology will help in reducing the fuel cost. With technological developments, vehicles have built-in stop and go technology. Moreover, low-resistance tires, active grille shutters, better vehicle aerodynamics, smaller engines, and light-weighting of frames/parts can also help in curbing the fuel spend. 

It is worth mentioning that most of the aforementioned practices cannot be done independently by fleet managers. To get the ideal ROI and COI, one needs the help of third-party telematics providers such as Eagle-I. 

Eagle-I helps you in making your lives easier by managing your fleet with the industry’s evolving trends and provides with the technology solution that can provide you with the best ROI.


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