Article

Optimizing Your Fleet's Fuel Budget

If you want to win the battle of cost control, effective fleet fuel management is key. Fuel expenses account for around 60% of a typical yearly fleet budget,¹ so keeping those costs in check is essential.

A major challenge is hidden fuel costs. Around 20% of annual fuel expenses are avoidable, resulting from unnecessary premium fuel purchases,² unauthorized fuel transactions³ and nonfuel purchases like snacks or drinks.⁴

For a fuel budget of $100,000, that's $20,000 a year that could be reinvested into the business. And that's just one example. Other factors — suboptimal routes, overloaded vehicles and long idle times — can quietly drain fuel budgets even further.

These challenges affect every fleet manager, but with the right approach, they can become opportunities for savings.

Identifying hidden fleet fuel costs

Fuel costs grow when businesses operate without a clear strategy, so the solution starts with an intentional approach to fleet management.

Unless bloated fuel expenses are identified and addressed, they will remain hidden. The first step in taking control is adopting a plan that leverages tools and [data] to monitor and manage fuel spending. Data provides valuable insights into how your fleet is performing, allowing you to optimize your fleet, reduce costs and improve efficiency.

Strategies to improve fleet fuel economy

Fuel cards are a powerful tool in this process and a staple of any effective fleet management strategy. [A fuel card program] provides insights into where costs are creeping in and equips businesses with the data needed to make better decisions.

Each fuel card is linked to a specific driver or vehicle, allowing fleet managers to:

• Set spending limits to prevent unauthorized purchases.
• Run exception reports to identify and address wasteful spending.
• Access reporting and analytics tools to track and adjust fuel expenses across the fleet.
• Capture odometer readings at every fill-up to monitor vehicle usage and plan for replacements.

Fuel cards are essential weapons in the battle of fleet cost control. By bringing hidden fuel costs into the light, they transform a common challenge into a financial advantage.

For busy fleet managers who may not have time to set up and maintain a fuel program, GM Financial Fleet Solutions offers the tools and expertise to create a plan that fits any business.

¹ Source: Wright Express
² Average 15% of annual fuel costs. Source: U.S. Bank Voyager
³ Average 3% of annual fuel costs. Source: Wright Express
⁴ Average 2% of annual fuel costs. Source: U.S. Bank Voyager