Even economy experts can’t predict the future of oil prices this year. With prices reaching more than $70 a barrel, there simply are too many variables at play in the world right now for most financial planning officers to make accurate assessments on fuel costs. In fact, many companies have seen fuel costs that are 15 or 20 percent higher than what they budgeted for this year.

So how can you plan for your fleet’s fuel expenses with any degree of certainty? While there’s no silver bullet for cutting costs across the board, there are a variety of steps that corporate fleet managers can take to save money and plan ahead for the future.

Fleet Fuel Card
One proven step is to take control of actual fuel purchases with a fleet fuel card. This is a tried-and-true staple of the fleet industry, and it works: Network data indicates companies can recapture up to 15 percent of fuel costs using cards that help monitor purchases among drivers. With fuel cards and similar fuel programs, what you’ll see in the short term is savings captured from fuel exception reporting. This allows companies to eliminate “slush” in their fuel costs. These programs help companies:

• Track octane of fuel drivers actually use; if they stay at 87 octane, they’ll get the same fuel economy as they would with higher octane gas – at a lower rate.
• Monitor how much gas employees buy; if they’re buying more than a company estimates they’ll need, it could be an indication that they’re filling up other cars or even gas-powered yard tools.
• Keep tabs on what else employees buy; if they’re buying something other than fuel, such as drinks or snacks, companies can take appropriate steps to eliminate the problem.

After the elimination of slush costs, longer-term management of a fleet’s fuel costs comes from the monitoring and use of vehicles with better fuel economy – and perhaps taking a gamble on the front end of a fiscal year.

You’ll want to consider such things as:

• Locking-in fuel pricing by buying fuel supplies upfront for the year. This is one way to hedge against an unpredictable fuel market. Of course, fuel prices are subject to fluctuations, so there is some risk involved. But it’s a safe bet that fuel prices are only going up – not down – in the foreseeable future.
• Fuel mileage; are your drivers getting the best mileage they can out of their fleet vehicles? If not, consider these questions: Are they using the right type of vehicle for their jobs? Are there vehicle maintenance problems that need to be corrected for better performance?
• Vehicle selection; does the vehicle fleet that your company has selected meet the needs of your drivers and their responsibilities? If your employees are driving trucks but could drive cars in some cases, then that’s a long-term consideration that must be addressed.

One area that might help in the long term is taking a closer look at the vehicle options your company can select from for its fleet vehicles. This might seem like a small thing, but it can actually help to buy options that matter – especially when they affect fuel economy. For example:

• Do your vehicles have air pressure monitors for tires? Properly inflated tires could save your fleet up to 10 percent of its fuel costs every year.
• Might your company consider buying diesel-powered cars? Because it isn’t as refined, diesel fuel is not as subject to fuel price fluctuations, and there are much cleaner versions available today.
• Have you considered vehicles with cylinder deactivation? These are big features among some vehicles, and they’re beginning to spread as an option. In V-8 engines, this feature cuts fuel and power to extra cylinders that aren’t used in highway driving, boosting fuel economy again.
• Can you buy vehicles that are more aerodynamic or made with more lightweight materials? Both considerations can save on fuel.