Avis FleetBlog


Fuel management: how to save during fuel increases

With the petrol price increase effective on the 1st June 2016 many people are throwing their hands up. Because whether you are a Fleet Manager who is in charge of many vehicles or an ordinary person driving your car, the cost of fuel is central to our lives. From businesses’ operational costs to individuals commuting to work, not to mention cost of living that is influenced by the price of fuel driving up food prices and interest rates. When fuel prices go up we can all expect to tighten our belts. But what causes fuel price increases and how can we prepare ourselves for them?

What causes fuel price increases in South Africa?

The global price of crude oil is the factor that has the most impact on local fuel prices. Crude oil is used to produce petrol and diesel. So when the price of crude oil drops, as it did last year, this leads to the price of petrol falling. From 2014 to 2015 the petrol price went from around R14 to R10 per Litre. Other factors that influence the price of fuel are the depreciation of the Rand (because oil is traded internationally in Dollars), fuel levies by government, wholesale margins of local oil companies, retail margins, and transport and delivery costs. 

How much you can save your fleet by filling up before a fuel hike

It’s common to see vehicles queuing outside petrol stations the night before fuel prices are set to increase. But how much money will you save by doing this and is it really worth the inconvenience? If you have a car with a 50 Litre fuel tank it will currently cost R641.50 to fill up. With a 52 cent increase it will cost you R667.50. So filling up before the increase will save you R26. For individual drivers this might not seem like too much of a saving. But if you are a Fleet Manager with a fleet of 30 vehicles you would save R780. And for a fleet of 100 vehicles you would save R2 600. This figure obviously increases when considering fleets of trucks since they have larger tanks. Since fuel is the biggest expense of most Fleet Managers, reducing the cost of fuel as much as possible is crucial.

How fuel management can save money for your fleet

With the rise in fuel prices it is more important than ever to save money for your fleet. Using Intelligent Fleet Management, you will be able to achieve measurable savings on your fuel spend on a monthly basis. With Avis Fleet’s Intelligent Fuel Management Solution, all the various sources of fuel data can be measured and presented to Fleet Managers regularly. This includes fuel consumption calculations, and alerts regarding fuel usage of each vehicle in the fleet will draw attention to any suspicious activity and highlight possible fraud. This solution has saved customers millions of Rand on their fuel bill.

Avis Fleet have a range of solutions as part of our fleet management services. Click here for more information about the fuel management solution.

 

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