Fuel Management

Fuel Management

Fuel and specifically its consumption by fleets represent a sizeable operating cost to any organisation that runs a company vehicle fleet. The exact management of this valuable asset is critical to profitability, as even the smallest of overall cost savings can make a big difference.

It is therefore vital that fleet operators have the correct tools to enable the necessary cost savings to be made through fuel management. Fortunately, there are a range of fuel management systems, fuel dispensers, fuel storage tanks, fuel tank contents monitoring systems and other ancillaries to help you achieve this objective.

Increasing fuel costs

Due to fuel management cost escalation in terms of duty and crude oil prices, fuel management has become one of the most crucial aspects of fleet management in recent years. The crucial fuel management policies i.e. who will pay for fuel and how payment (reimbursement) is made will largely depend upon:

What fuel the organisation will pay for under its fuel management policy:

• all fuel costs
• business only mileage

Method of purchase, payment, or acquisition under the company fuel management policy

• on account through local garage
• through fuel card supplied by employer
• by employee and claimed for later
• issued from bulk supply

Potential Decisions to control Fuel Management costs

Again, the alternatives suggested above will all have specific benefits and will give rise to a number of fuel management issues. The factors which will be used to evaluate the alternatives will include:

• Cost; can the business expect to pay a fair price for the fuel it purchases?
• Control; to what extent can the business meet the costs only of fuel used for approved purposes?
• Convenience; can drivers obtain fuel without undue detours and in all the geographic areas in which they will be assigned?
• Compliance; will the fuel acquired be to the approved standard – as laid out in the fuel management policy?
• Information; can transaction data be readily assembled into meaningful fuel management information?