|A-1 Petroleum & Propane|
P.O. Box 246
Ellensburg, WA 98926
Aggregate Fuel Cost on the Rise!|
Fleet Managers Look beyond Price of Fuel
Fleet Managers nationwide are realizing the cost of fueling a vehicle goes far beyond the price per gallon. It has long been considered the best policy to pursue the lowest priced fuel. But are you really saving any money?
Fleet managers surveyed have a clear and concise answer, "Not really", particularly if the driver spends more than a few minutes fueling. The reason is that labor must be a factor when analyzing a fleet's aggregate cost of fuel.
For example: Assume a driver is paid $20.00 per hour loaded (including benefits), and they waste only 15 minutes during the fueling process on such things as waiting in retail lines, browsing a C-Store/Truck Stop, or chatting with clerks. This represents an aggregate fuel cost of $5.00 at the filling attributed to lost productivity. Most fleet managers agree this is not far fetched.
So, what is the impact on the price per gallon of fuel paid? On an average fill of 30 gallons, it increases the price per gallon by .167 cents! ($5.00 / 30 gallons = .167) The aggregate fuel cost increase is even higher if you are paying your drivers overtime.
So how does a fleet manager lower the aggregate fuel cost related to the fueling process itself? The best way is to select and implement a fuel management system that offers strictly commercial fueling locations. Also known as unattended fueling, these locations are free from the congestion and distractions common in retail type fueling environments.
Not only are there fewer distractions that can consume the driver's time, they are more conveniently located in commercial related locations and on the Interstate highway system. Drivers spend less time searching for their next fuel stop. Once on site, the drivers are most often provided with high speed dispensers which helps get the driver back on the road and productive more quickly.
Bottom-line, the lowest price of fuel may not always be the best deal. Watch your aggregate fuel cost more closely and you will find that savings in places you never imagined.