Fleets must counteract rising fuel prices with effective mileage management
TMC calculated the cost of fuelling a car over 10,000 miles, based on inflation-adjusted fuel prices and the average CO2 rating of new cars acquired by fleets each year, from 2004 to the present. The 2010 fuel bill is marginally higher, even though today’s average new fleet car uses 13% less fuel than its 2004 counterpart.
However, if fleets had implemented and achieved a 5% annual reduction in mileage costs between 2004 and 2010, this would have delivered a 14% cost saving in real terms compared with relying solely on improvements in company car CO2 emissions to offset rising fuel prices.
'The message is clear. Businesses that intend to cut their fleet costs cannot afford to rely solely on more efficient company cars,' said Paul Jackson, managing director of TMC. 'While the most fuel-efficient cars – those in the sub-120g/km CO2 bracket – are holding their own in the race against higher fuel prices, the average new car is being left behind.
'Businesses need to tackle their fleet mileage costs systematically if they want to really reduce the cost of business travel over the next few years,' concluded Mr Jackson. 'The best place to start is by identifying and eliminating all wasteful mileage claims. Then, to stay ahead of rising fuel costs, you should also set drivers annual targets for reducing their fuel and mileage expenses.'