Fleets should not use the delay on fuel duty included in the Budget as an excuse to postpone action on petrol and diesel costs, warns cfc solutions.
The April 1 fuel duty rise previously announced by Chancellor Alistair Darling has been put back to October 1 in recognition of recent spiralling fuel costs – since the last 2007 Budget, petrol has risen in cost by around 17 pence per litre and diesel by 20 pence.
However, the fleet software market leader says that upward pressure on oil prices will see pump prices continue to rise during 2008, and that a structured approach to fuel management should be adopted by fleets who have not done so as soon as possible.
Alison Southcombe, marketing leader, said: “The delay in the two pence per litre duty rise gives fleets a little breathing space but the fact is that price rises seen in the last year dwarf the duty that has been delayed.
“While there is no evidence to suggest that we will see a further 20 pence per litre price rise repeated in 2008, two pence might not make that much difference. Instead, a structured fuel plan is needed.”
cfc has a standard five point plan to fuel management that it uses to introduce its fleet customers to the basics of fuel management.
Southcombe added: “There is a perception among many fleets that you just have to grin and bear rising fuel costs but, in fact, there is much that can be done to manage down the amount of fuel your vehicles use and the pump prices that you pay.”
1. Measure your fuel use
A large number of fleets simply don’t know how much fuel they use overall or per driver or per vehicle. You need to put a monitoring system in place. The easiest way to do this is to buy all petrol and diesel through specialist fuel cards. You can then access the information collected as paper or software generated reports that will give you an overall picture and highlight individual problems.
2. Formulate a fuel policy
Having a policy on fuel use is a signal to your organisation that you are taking the issue seriously. There are a number of areas to consider but even simple steps can produce good long term results - for example, don’t add cars to your fleet that do not meet a pre-agreed Government combined average fuel consumption figure.
3. Manage the issue
With the information provided by your fuel cards, you will be able to manage your fuel use proactively. Software is useful here. For example, you can set up what you believe to be acceptable bands of fuel consumption for different types of vehicle and ask the system to notify you when drivers or vehicles fall outside of these. You can also use your fuel card to closely manage fuel spend - for example, by specifying that drivers only use outlets that you consider to be price competitive, such as supermarkets.
4. Consider the green angle
One of the good things about taking a proactive stance on managing fuel use is that you will also be able to manage your carbon footprint more effectively. This can make the whole issue easier to deal with internally because you can stress the importance of corporate responsibility - for example, it may be easier to encourage drivers to share cars or take more care planning routes on environmental than cost grounds.
5. Cancel out fraud
Most fleet managers will tell you that rising fuel prices also tend to lead to higher levels of fraud among drivers. If you operate a fuel card system and link each card to a vehicle, then fraud is almost impossible. However, if you simply allow drivers to reclaim fuel from receipts submitted, it is all too easy for them to fill up their spouse’s car using company money once a month. The administrative burden of a pay-and-reclaim system means that it is unlikely they will ever be caught.
Southcombe added:”These are all relatively simple steps but they will help you to control fuel expenditure and also cut your carbon footprint. Like many areas of fleet management, it is all about taking a methodical approach and implementing measures thoroughly.”
www.cfcsolutions.co.uk