Cost Management

23rd March 2016

Road Hauliers: Fuel optimisation ideas.
A further freeze on fuel duty along with the rates of HGV VED and Road user Levies in the March 2016 Budget were welcome news for Road Hauliers. The government followed on by saying that over the last 6 years operators have on average saved a total of £14,400 on fuel. Despite the recent freezes in fuel duty, the cost of diesel still represents as much as 35% of the operating cost of a truck. Operators should therefore continuously seek to reduce fuel costs by focusing on the three main areas, as detailed below:

The Vehicles:
Assess the possibility of downsizing to smaller vehicles. Volvo says that if the operator ticks the I-Shift transmission with software upgrade box it could save up to £1,059 a year.
Consider changing to low rolling resistance tyres which could save £1,766 a year (source: Volvo).
Roof and side deflectors with chassis skirts, when correctly adjusted, could save £1,996 (source: Volvo).
Incorrect tyre pressures could result in an increased fuel cost of £353 per year (source: Volvo).
Correct wheel and axle alignment is worth over £800 a year (source: Volvo)

The Drivers:
Initial training and monitoring through telematics to ensure ongoing improvement. Scania have stated they generally see efficiency gains of between 8% and 12%.
Look at ways to engage and encourage drivers into more efficient ways of driving the vehicle, eg use of the Driver Performance app by the telematics provider Microlise.

The Method and Cost of fuel:
The RHA’s fuel card competitive fixed weekly pricing.
The Fuelcard people claim up to a 4p per litre saving and as much as 10p on the motorway network.
Bunkered fuel could be an attractive option for operators working from a regular base location.

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