Fuel Prices and Ongoing Fuel Price Volatility Are the Top Challenges Facing Fleet Managers

gas prices

There is increased pressure at all levels of organizations to reduce spending, including fleet operations. As we know, reducing fleet costs is a constant, never-ending struggle for fleet managers. The increased cost of fuel and ongoing price volatility are the top challenges facing fleet managers, according to the 2013: State of the Commercial Fleet Market report released by Automotive Fleet.

According to the report, many fleet managers report they are given a specific percentage-reduction goal in overall fleet costs and it is up to them to figure out how they are going to achieve it. As the largest cost component of operating expenses, fleet managers are focusing on a multitude of fuel-reduction strategies. It’s likely that fuel prices are going to fluctuate. And, most fleet managers understand that fuel prices will continue to be elevated. Forecasting fuel prices is difficult due to pricing volatility and sensitivity to external variables. The challenge for fleet managers is planning, budgeting, and containing the variable cost of fuel.

All aspects of fuel management now need to be examined, including route efficiency, vehicle payload, territory coverage to reduce miles driven, and fraud management processes. A few ways companies and fleet managers are aiming to minimize the impact of fuel price volatility on their budgets is by developing fuel-efficiency focused driver training programs, using telematics to monitor drivers’ behavior, limiting idling time and speeding, and working multiple fuel providers.

Companies are implementing programs to train employees to drive their vehicles in a more fuel-efficient manner. This means eliminating fast starts and hard stops and avoiding excessive idling. Some studies have shown that fuel efficiency can be improved by as much as 19% simply by reducing a vehicle’s idling time. Encouraging drivers to drive within the posted speed limit, especially on highways, can also help with fuel efficiency.

Fleets are also looking at telematics as a way to control fuel spend, by potentially limiting idling time and speeding. Fleet managers are using telematics as a way to change driver behavior and improve fuel efficiency. With fuel prices varying by as much as 10-15 cents per gallon in a five-mile radius, fleets are also starting to use tools to better control where drivers purchase fuel.

As part of our goal to provide top-notch fleet management solutions, by helping our clients to manage fuel costs and increase efficiencies, Capital Lease Group provides a number of services, including working with a multiple fuel provider and telematics solution.

For telematics, CLG has partnered with Fleetronix, a provider of one of the most optimized and efficient GPS technology solutions available in the commercial vehicle fleet marketplace. Fleetronix has a state-of-the-art system that uses GPS technologies, combined with software and wireless communications, which enable you to track, communicate with, and update your entire fleet of vehicles. For more information or if you’re interested in a free webinar on telematics, contact Capital Lease Group.

With the current changes in fuel prices and limits, caused by branded fuel providers, CLG can also help clients control fuel costs with our multiple fuel provider, Voyager. Some of the advantages include:

  • Access to many brands to be able to shop for the best prices
  • No monthly card fee
  • Over 230,000 fueling stations
  • Detailed fuel data reporting

For more information about how to take advantage of our partnership with Voyager, contact CLG.

Capital Lease Group is a leading fleet leasing provider in Massachusetts and beyond. We are committed to structuring a lease that will be designed to fit your business rather than having your business conform to the confines of a standard lease. We will invest the time to understand each customer’s individual needs while offering a full range of leasing services and products that will complement each customer’s goals. Our experienced staff of knowledgeable experts in sales, administration, and service will help you feel comfortable so that your main focus will be on your company’s vision while we handle all of your fleet requirements.