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Motorists across the country would have been relieved to hear in last week's Budget that the chancellor has not used low fuel prices as an opportunity to raise duty on petrol and diesel to help reduce the deficit. However, current low prices and this extended fuel duty freeze will not last forever.
Fleet managers and business motorists would be wise to keep fuel efficiency high on the priority list.
Even with current fuel prices, better fuel efficiency is one of the key drivers for fleet managers looking to bring down the cost of running their vehicles. Research found that two thirds (66%) of company vehicle drivers said they monitored the fuel consumption of their vehicle, compared to less than half (44%) of private vehicle owners.
This suggests that businesses already have a head start on private vehicle owners, with most company car drivers having a vested interest in keeping fuel costs at a minimum.
There are a number of factors behind this statistic, including that very often company car drivers have to reimburse their private journeys.
Therefore it makes sense for them to fill up with fuel as cheaply as possible - i.e. at supermarket petrol stations and not motorway service stations. This benefits both the driver and the business in the long term.
Another way to keep fuel costs down is by using fuel cards. Fuel cards often dictate where employees are able to fill up, which again keeps costs down but it also gives fleet managers much more reliable information about fuel consumption across their group of vehicles.
In addition, telematics technology, which is now being used by provides fleet managers with real-time information including whether employees are driving efficiently. The study also found 68% of businesses have noticed a reduction in fuel spend since adopting the technology.
The message to businesses should be to look at making the best of the cost saving opportunities, and try to reinvest the proceeds for future growth or bring forward payments to suppliers and provide a small cushion. Prices will inevitably rise again and businesses should be prepared to handle the peaks and troughs this will bring in terms of costs.
It is advisable to have ingrained habits to minimise fuel spend, which will help to soften the blow and efficient driving also means reduced carbon emissions, which is not only a good thing for the environment, but also the bottom line.
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