With gas prices rising, how can you reduce and save fuel in a fleet and car rental company?
Are you a vehicle rental company or a fleet manager? Your company is facing the explosion of fuel costs and this impacts the profitability of the company? The various current crises and inflation have indeed contributed to the increase in the price of gas, diesel and many other fuels. It is therefore highly urgent to save fuel for your fleet in order to perpetuate the growth of your rental agency and your car fleet. Let’s take a look at how to do this and why installing the right fleet management software can help you reduce fleet fuel consumption.
Why are fuel prices rising ?
Gasoline and diesel fuel prices are now at historic levels, but why are fuel prices rising? The main reason for the meteoric rise in fuel prices at the pump is the economic recovery after the Covid. Simply put, the cost of fuel for a fleet of cars depends on the price of a barrel of Brent crude oil, which is considered the world’s benchmark for oil prices. This price is thus indexed according to supply and demand. As the industry and world production are on the rise again after several months of inactivity, this naturally leads to an increase in demand and therefore, in parallel, in the price of fuel for a car fleet. The euro/dollar exchange rate is also a significant factor in this increase. The price of barrels is indexed in dollars. Thus, if the euro is strong, the price of oil will be cheaper in Europe, but if the euro is weak against the dollar, the price of oil for a fleet will be higher for Europeans.
Economic recovery and currency indexation are not the only causes of rising gasoline and diesel prices. Conflicts such as those in Ukraine are important factors in the increase in fuel prices. For example, Europe imports most of its diesel from Russia. The price of diesel has soared due to fears of a European Union embargo. The total price of a liter of petrol also includes what is known as the gross distribution margin, which finances transport, storage and any service station costs, not forgetting the relevant taxes, which are significant in some countries. Added to the taxes and supply difficulties, this is why the price of fuel has increased drastically in recent days.
How to calculate the cost of fuel for a fleet?
Calculating the cost of fuel for a fleet is the first step to saving and reducing your fleet’s gasoline and diesel consumption. These savings will allow you to perpetuate your company’s growth and profitability. To do this, we recommend downloading and implementing a management software. This type of tool is an ideal solution to optimize your fleet costs and reduce your fuel bill. Used by many car rental companies and fleet managers, the myrentcar application allows you to calculate the cost of fuel for a fleet thanks to its complete functionalities. Accessible online in SaaS mode from your smartphone or computer, myrentcar is a web-based solution that manages all the business cycles and calculates the fuel consumption of a fleet.
The analysis and statistical tools of the myrentcar management software centralize your purchases and suppliers to display relevant data on your activity in real time. Myrentcar accurately calculates the profitability of a vehicle based on its costs and sales to help you make decisions. Knowing the fuel consumption car by car from myrentcar allows you to optimize the movements of your fleet and to invoice gasoline and diesel accordingly. An investment in a management ERP system will help you on a daily basis to optimize and calculate the fuel consumption of a fleet. This system is essential in order to manage your fleet properly, for its invoicing and accounting.
How to reduce the fuel consumption of a fleet?
Faced with the increase in the price of gasoline and diesel, how to reduce the fuel consumption of a fleet? There are several solutions to reduce the fuel cost of a fleet. Firstly, a change in the behavior of your customers and employees is essential. Promoting eco-driving, regularly checking tire pressure, reducing speed while avoiding overloading the car and anticipating traffic will allow your company to save fuel on a fleet. Choosing a fleet of electric and hybrid cars is also a response to the rising price of gasoline and diesel. However, the high cost of use and the limited autonomy of electric or hybrid vehicles can put a brake on this investment despite the advantageous tax system and the various ecological purchase bonuses granted by the government.
Another solution for reducing fleet fuel consumption is car-sharing and on-board telematics in autonomous and self-service vehicles. Thanks to the geolocation and real-time tracking of the clickygo car-sharing application via the myrentcar fleet management software, companies are able to identify routes, driving style and traffic in order to optimize their employees’ or customers’ driving. This advice is not to be taken lightly as fuel represents between 15% and 30% of a fleet’s total expenses. Controlling the fuel costs of a fleet thus requires precise monitoring of consumption and mileage. Developed by hitech, myrentcar is used by many fleet managers of cars, SUVs, vans, two-wheelers and trucks. This accurate centralization of information on the myrentcar online management solution will allow you to limit the impact of fuel prices and behavioral abuses. We therefore recommend that you try myrentcar and clickygo free of charge right now to save fuel in your fleet!