Rising Gas Prices: How Fleet Management Can Help
The cost of gas is the highest it’s been since the start of the pandemic. It. Demand for gasoline decreased last spring as travel slowed while people quarantined at home. And gas prices dropped 27 cents from 2019. But pump prices have steadily risen as the crisis has continued. By the end of 2020, it reached $2.31, according to the AAA. In January 2021, diesel averaged $2.63 across the country.
Gas demand is now at the lowest level recorded by the Energy Information Administration since May 2020. Still, even with such low demand, pump prices continue to increase.
States with the most expensive gas include West Virginia, New Mexico, Florida, Kentucky, Tennessee, South Carolina, Arkansas, North Carolina, Missouri, and Ohio.
According to the AAA, gas prices are on the rise because crude oil has become more expensive and supply has tightened. But, the market remains optimistic that coronavirus vaccines will help recover crude demand in 2021.
Of course, fuel costs impact a fleet manager’s bottom line.
Fleet Management Tools Can Save Your Business Gas Money
Two major factors comprise a company’s bottom line: operating costs and fixed costs. Fuel is the second-largest expense a fleet owner faces, after vehicle depreciation. Fuel represents about 60% of a fleet operating budget. Managing this expense is crucial to maintaining a budget and turning a profit.
Because shipping continued to be in high demand during the pandemic, fuel costs were a significant concern for fleets.
Fleet managers remain focused on opportunities to increase fuel and engine efficiency and decrease overall spending.
One way to lower fuel costs is to invest in energy-efficient vehicles. Another way is to use GPS tracking tools and vehicle monitors.
Using GPS tracking tools and vehicle monitors, you can cut fuel costs by choosing faster routes, and reducing idle time, vehicle speed, and harsh stops. You can also monitor driver behavior and identify potential maintenance issues to minimize the risk of breakdowns. More ways to boost your bottom line.
A comprehensive telematics system can significantly improve your vehicles and your costs.
Fuel Cards Provide Multiple Benefits
Every time drivers hit the road, their choices affect fuel costs. In addition to miles driven, drivers can shop mindfully for cheaper gasoline in a competitive market. If fleet managers direct their drivers toward cheaper fueling stations, emphasize keeping fill-up costs low, and track pricing, they can save money.
Fleet fuel cards also help businesses reduce costs. They also make it easier to track transactions and understand how much is being spent. Businesses can monitor which fuel grades drivers choose, and the number of gallons they pump. And they can integrate that data with their GPS tracking tools. Fuel card programs can ensure your drivers use specifically branded filling stations, provide discounts, prevent fraud, and regulate expenses.
Rejuvenating Your Fleet
If you eliminate older, higher-mileage vehicles from your fleet, you can improve your fleet’s fuel economy. Sure, this would require a significant up-front expense. But ultimately it would help your bottom line.
Fuel-efficient vehicles can significantly improve how much you spend on gasoline and help reduce your impact on the environment.
Selecting the right vehicles and the right technology for your business is essential to saving money — especially fuel costs.
If you’d like to learn more about how GPS Trackit can help to improve safety, increase productivity and reduce costs for your business, speak with one of our knowledgeable Fleet Advisors at 866-320-5810 or get a quick Custom Quote.
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