An illustration of digital fuel management with a tablet showing vehicle fuel data.

It’s not difficult to grasp that reducing fuel consumption in your fleet directly translates to greater cost savings. In this article, we’ll uncover proven methods, techniques, and protocols to help you reduce fuel expenses and maximize the resulting savings.

Why Fleet Fuel Management Matters

An illustration of digital fuel management with a tablet showing vehicle fuel data.

For any business engaging in fleet, primarily, the proper management of fuel is a top priority due to its great impact on overall operating expenses. It’s one of the largest recurring costs in fleet management, and its volatility is the sprinkle on top that makes it difficult for businesses to predict and control the budget. 

Improving fuel efficiency helps fleet vehicles last longer and increases their reliability. A vehicle that efficiently consumes fuel will have reduced engine damage (wear and tear), won’t break down often, incur lower maintenance costs, and, overall, will have a longer life.

In a nutshell, it’s not that adding too much fuel is inherently bad for a vehicle’s lifespan; rather, efficient fuel consumption leads to less heat generation and reduced engine strain. Both of these factors directly contribute to improved vehicle longevity and performance. 

Here are two of the many reasons why fleet fuel management matters:

  1. Rising Cost of Fuel

Fuel prices have been on the rise, and one of the main causes is the decision taken by the OPEC+ (Organization of the Petroleum Exporting Countries) to continue cutting oil production, which reduces supply and pushes prices upward. [1]

An increase in demand, a reduction in supply, and geopolitical instability all contribute to the rising prices of fuel. This increases the financial burden on companies and they are forced to come up with an effective fleet fuel management system.

  1. Environmental Effect

Besides finances, companies are more focused on environmental conservation than ever before, and this growing emphasis on environmental responsibility is appreciated. However, increased awareness also results in stricter emissions regulations, putting pressure on companies with fleets to minimize their environmental footprint. 

The silver lining for businesses is that reducing fuel usage not only saves money but also lowers greenhouse gas emissions, contributing to cleaner air and a more sustainable future.

Best Fuel Management Strategies for Fleets

An illustration of fleet fuel management with workers, vehicles, and fuel systems.
  1. Downsize to More Efficient Vehicles

The larger the vehicle, the more power and torque it needs to start and stay in motion, which is why they’re equipped with bigger engines that produce the necessary power. The size of the engine is almost always directly proportional to the size of the vehicle, and this significantly impacts fuel consumption. Bigger engines are often referred to as “gas guzzlers” for a reason.

By downsizing to a smaller vehicle with a smaller engine, fleets can significantly reduce fuel consumption. 

If possible, you should also consider opting for hybrid or electric vehicles (EVs). Hybrids use both electric power and gasoline and show a 20 to 25 percent improvement in fuel consumption in urban settings (stop-and-go areas) and a 5 percent increase in rural areas or highways (open roads, essentially). [2]

However, while EVs eliminate the cost of gasoline, they come with a higher upfront price and can be expensive to maintain. Additionally, it’s important to ensure there are enough charging stations along your route to make them a practical option.

  1. Reduce Idle Time

Depending upon your engine type and size, idling can consume up to a major half a gallon of fuel on average — a substantial amount of fuel. [3]

Idling, in simple terms, refers to when a vehicle’s engine is running, but the car is not moving. Drivers are usually idling their engines when they’re stopped at a red light, waiting in traffic, or while they’re parked. During idling, fuel is still being consumed, but the vehicle isn’t going anywhere, which can waste fuel and contribute to air pollution. For fleets, reducing idle time can save fuel. 

While idling is completely normal, doing it for a long period is what needs to be avoided. Here are some steps you can take to tackle it:

  • Installing an automatic engine shutoff system, as the name suggests, will turn off the engine after a set period of idling, ensuring that fuel is not wasted when vehicles are not in use.
  • Using Auxiliary Power Units (APUs) provides power for heating, cooling, and other onboard needs without requiring the engine to run. They are especially useful for large trucks during rest periods.
  • Professional drivers already know this, but newer drivers should be educated on the importance of reducing idle time and encourage practices like turning off the engine when waiting for a longer period.
  1. Track Fuel Usage with Telematics

Driving habits like harsh acceleration, excessive speeding, break-checking, or taking inefficient routes are all contributors to reduced fuel economy on a vehicle. Telematics systems help monitor these driving patterns, providing you with real-time data on fuel consumption, driver behavior, and vehicle performance. This information makes it easier to optimize routes, maintenance schedules, and other factors that directly contribute to fuel efficiency.

  1. Implement Regular Vehicle Maintenance

Everyone’s heard the saying, “A well-oiled machine runs smoothly.” There is no denying it. A well-maintained vehicle operates more efficiently and consumes less fuel. 

Prioritizing maintenance tasks like engine tuning and regular servicing, which includes changing oil, air filters, and tires, is crucial for your vehicle’s performance and lifespan.

Using a higher grade/octane of fuel is also recommended, as it leads to improvements in fuel mileage, typically around 1-2%. This is because the right viscosity reduces engine friction, allowing for more efficient operation​. [4]

  1. Optimize Tire Pressure

This is a commonly neglected area despite being, in our opinion, the easiest way to improve fuel economy. Properly inflated tires reduce rolling resistance, allowing a vehicle to move more freely and use less fuel. Tires that are underinflated reduce fuel economy by about 0.2% for every PSI drop, according to the U.S. Department of Energy. [5]

Regular tire maintenance, which includes tire pressure checks using a tire pressure monitoring system (TPMS), helps maintain the optimal pressure levels. 

Some additional tire-related tips that don’t directly affect fuel economy but should be considered for overall efficiency include ensuring tires are properly aligned and balanced, using the right type of tires, and changing them when their grooves wear down significantly. All of these habits will increase tire life.

  1. Use Fuel Cards for Better Control

Fuel cards, also known as gas cards, are one of the easiest and most effective ways to improve fuel management for a fleet. Fuel cards often come with discounts attached to them. Even small savings across your entire fleet over a year can lead to significant savings, especially when bought in bulk.

They also assist in expense tracking and reporting. By having data on fuel purchases, fleet managers can calculate how much fuel is being used. From there, limits on fuel purchases or restricting purchases to specific types of fuel or times can be set, if required. 

  1. Plan Efficient Routes

A tried and tested way of improving fuel efficiency and saving your company both time and money is efficient route planning. With modern technology like GPS and data on current traffic situations, planning a route has become a science and not merely a “best guess wins” situation.

Using GPS, the most efficient routes can be determined before the fleet is on the road. And with some active involvement from team members and drivers, fleets can avoid congested areas, minimize detours, and reduce idle time.

Route planning or fleet tracking software integrates real-time traffic conditions, allowing drivers to adapt to changing conditions on the fly.

  1. Eliminate Unnecessary Weight

The heavier a vehicle is, the more engine power needs to be produced to get it moving, which means more fuel is burned. Proper weight distribution, along with removing unnecessary cargo and equipment from your vehicle, can improve fuel economy.

Before sending out your fleet, perform an audit. If any cargo, equipment, or items are onboard that don’t need to be there or serve no purpose, remove them for better overall performance.

How LLumin Can Help with Fleet Maintenance

A screenshot of LLumin’s homepage.

LLumin’s advanced CMMS fleet maintenance software not only makes the task of managing fleets easier but also improves your operations. Here’s how the features can help you as a fleet business owner:

  • Predictive and Preventative Maintenance: By anticipating maintenance needs before they lead to breakdowns, which can be done using historical data to predict potential future failures, LLumin minimizes unexpected vehicle downtime, ensuring vehicles are readily available for use as proactive maintenance can be performed. Be sure to read our Predictive Analytics Fleet Management guide to learn more about this.
  • Integration Capabilities: LLumin can integrate with data sources to provide an accurate and more comprehensive view of the available data. It also connects current telematics and operational logs with LLumin’s AI-powered system to create a highly effective predictive maintenance (PdM) program. As a result, you get a complete view of the health of the vehicles within your fleet.
  • Performance Metrics: By tracking key performance indicators (KPIs) such as fuel efficiency, vehicle utilization rates, maintenance costs, and driver behavior, you can gain insights into various aspects of fleet operations and identify areas for optimization. For example, analyzing fuel consumption can reveal detrimental driving habits, such as overspeeding, sudden braking, and excessive idling.
  • Customizable Dashboard: Our customizable dashboard is a powerful feature that significantly improves operational efficiency and the ability to make better decisions. You can tailor the dashboard to your unique needs and get quick access to the most relevant data.
  • Availability on Mobile: Fleet and fleet owners are constantly on the move, so LLumin’s CMMS+ availability on mobile devices, namely, iPhone, iPad, and Android, makes it possible for you to manage your crew from anywhere and at any time. The mobile app also provides important information, like alerts for overdue maintenance and the fleet’s current status.
  • Real-Time Data Analytics: With instant access to live data, you can monitor vehicle performance, driver behavior, and operational metrics in real-time. Additionally, it uses data from telematics and sensors to deliver real-time, AI-powered insights into your fleet maintenance program.

There are various ways our CMMS+ system can help your fleet business save on operational costs and improve performance. To learn more about LLumin, schedule a demo with us today!

Conclusion

Fuel. a scarce resource that is also the largest expenditure for a fleet, must be used as efficiently as possible. Choosing a top fleet management software like LLumin will help you optimize fuel consumption by maintaining vehicles in top-notch condition and ensuring drivers perform to the best of their abilities while staying safe.

FAQs

What is a fleet fuel management system?

A fleet fuelling management system is a set of methods, practices, tools, and processes designed to monitor, control, and optimize fuel consumption within a fleet of vehicles.

How do you manage fuel for the fleet?

To manage fuel for a fleet, tracking fuel consumption and monitoring fuel purchases is necessary. Pair that information with implementing fuel-efficient driving practices and using technology to analyze fuel consumption data to identify areas for improvement.

What does fleet management mean?

Administration of a company’s vehicles is referred to as fleet management. This includes acquisition, maintenance, tracking, and overall operation of the vehicles.

What is fleet fueling?

Fleet fueling simply refers to refueling the vehicles within a fleet. It may or may not involve using dedicated fueling stations, mobile fueling solutions, or fuel cards to manage and track fuel purchases.

References

  1. https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/101123-oil-gasoline-prices-set-to-rise-in-2024-as-opec-production-cuts-take-their-toll-eia
  2. https://www.cts.umn.edu/news/2021/march/hybrid
  3. https://rerev.com/articles/how-much-gas-does-idling-use/
  4. https://www.acfa.org.sg/newsletters/influence-fuel-octane-fuel-consumption#:~:text=The%20higher%20octane%20number%20is,fuel%20consumption%20by%20approximately%202%25.
  5. https://afdc.energy.gov/files/u/publication/gas-saving_tips.pdf?fbb3c63ad5#:~:text=Under%2Dinflated%20tires%20can%20lower,as%20in%20your%20owner’s%20manual
Chief Operating Officer at LLumin CMMS+

Karen Rossi is a seasoned operations leader with over 30 years of experience empowering software development teams and managing corporate operations. With a track record of developing and maintaining comprehensive products and services, Karen runs company-wide operations and leads large-scale projects as COO of LLumin.