We’ve all noticed our petrol getting more expensive over the last few years and it’s only getting worse. Over the past year petrol prices have risen by around 13p a litre and diesel by almost 15p per litre. That included a record 6p per litre rise during May of this year, the highest since the RAC started tracking prices 18 years ago.
The fuel price rises have hit all drivers hard, particularly those on lower incomes. But when the increases affect an entire fleet that could have a major impact on your bottom line.
As a general rule, a $2 rise in the price of a barrel of crude oil translates to a 1p change at the pump. The petrol companies are often slow to respond with reductions when the price of crude oil drops, but this time we could have an even longer wait. US President Donald Trump’s decision to pull out of the Iran nuclear deal caused prices to rocket. At the moment we have no way of knowing whether that price will drop once the long term effects of his decision become clear.
We’re feeling the impact of the price increases even more keenly here in the UK. The value of the pound is currently at a four month low. That could mean an extra couple of pence on a litre of fuel in the months to come.
Unfortunately, there’s absolutely nothing we can do about fuel price rises. However, that doesn’t mean that you can’t take action to lessen the impact on your fleet. Using fleet telematics could help you to minimise your fuel costs in a range of different ways.
You might think that installing fleet telematics will be too expensive, particularly when you’re already feeling the pinch. However, our customers have all saved money in the long run. Here’s what a telematics system can do to reduce your costs.
A fleet telematics system will devise the most efficient route for each vehicle. You can plan each delivery run so that vehicles travel via the shortest or quickest route, so they use less fuel. The system will also predict where there’s likely to be heavy traffic so your drivers can avoid getting stuck.
Even with an optimized route problems can still arise. You can choose a system that allows you to monitor vehicles when they’re out on the road and help them to avoid traffic jams. That way they’re on the move and not wasting fuel idling in a queue.
Getting stuck in traffic doesn’t just use more fuel. It can lead to increased maintenance costs as a result of heavier usage of the brake and clutch. Some systems will also allow you to monitor for maintenance issues so that you can intervene earlier and at lower cost.
If all that doesn’t tempt you, how about 10-15% off your insurance? Most major insurers offer a discount on vehicles with fleet telematics installed.
These are tough times for us all. If you’d like to find out more about how fleet telematics can help you to combat fuel price rises, get in touch.