Rising fuel prices: how to save across your fleet

When diesel prices rise or fluctuate from one week to the next, concern about managing fleet refueling costs also increases.

After all, the impact goes beyond the fuel budget. There is an entire chain behind it:

As fuel becomes more expensive, transport companies need to reassess freight rates, and retailers and e-commerce businesses may have to review their sales prices. The economy throughout Brazil ends up being affected.

How is the fuel price formed?

Four factors are considered when forming fuel prices in Brazil: the producer or importer's price, the tax burden, ethanol costs, and distribution and sales margins.

One of the largest price drivers is the tax burden, particularly because, in several cases, taxes are charged on a “final price”—after all the other components contributing to fuel price formation have been added.

Although Brazil is self-sufficient in oil, according to Petrobras data, it is also a major exporter of this raw material. Even if it used only its own resources, prices in the country could be influenced by market conditions, production costs, taxes, and supply chain margins.

This also helps explain the next question:

Why do fuel prices rise?

Fuel price increases can result from a combination of production or import costs, the tax burden, product composition, distribution and resale margins, and market variations.

In other words, in a country such as Brazil, prices can change even when a fleet does not alter its operation: the company buys fuel within a chain that depends on product prices, taxes, distribution, and sales.

To track these movements using updated information, ANP, Brazil's petroleum agency, provides spreadsheets with the results of the latest weekly Fuel Price Survey, including weekly average prices for Brazil, its regions, states, and municipalities.

And what will happen next? The future is still uncertain, and there is no way to make a definite prediction about changes in these prices.

Therefore, until definitive measures or a clearer trend emerge, you need to pay special attention to your fleet's costs—especially fuel consumption control. As a first step, you need to understand:

How do you calculate fuel consumption?

You need to divide the number of kilometers traveled by the amount of fuel consumed. A simple enough calculation, right? But be careful.

You need to pay attention when collecting the numbers to obtain a more accurate result.

Simply using the odometer reading and refueling volume in the calculation is not enough: you need to account for kilometers previously traveled and whether the tank already contained any fuel before refueling.

These details make all the difference.

So, to find out fuel consumption per km:

First, you can gather all the numbers manually, starting with the next refueling. Here, you start by emptying the tank (driving until the vehicle reaches this level) and refuel, accurately recording the diesel volume and mileage shown when filling the tank.

The next step is to keep driving and traveling until the tank is empty again. At this point, you record the new mileage reading and calculate in two parts:

1. Subtract the initial mileage from the new reading.
2. Divide the number of kilometers traveled by the amount of fuel.

A second option is to carry out this control through a digital platform with automated functions.

A fuel management system would be ideal, but tools such as the electronic checklist are also helpful. In other words, the checklist records vehicle mileage at each departure and arrival, along with the fuel level reported in the record.

How can your fleet handle rising fuel prices?

You are unlikely to see a cost reduction immediately after fuel prices rise, but you can control and avoid excessive costs in various areas of your fleet management through effective, focused planning.

You can also generate more information to know where to cut expenses, direct new investments, or innovate in logistics processes.

The best actions include:

Control mileage

As discussed above, mileage is essential for finding out your fleet's actual fuel consumption. So you need this control.

In addition, if the vehicle has traveled farther than expected, its performance may be impaired, increasing fuel consumption. This is because the engine works harder to start moving, heats up more when accelerating, burns more fuel due to faulty spark plugs, etc.

Mileage control can be performed through real-time monitoring, using telemetry or other route planning and fleet monitoring systems that allow you to detect acceleration spikes, excessive idling, inappropriate speed, and other factors influencing operating costs.

This attention matters because aggressive driving—with sudden acceleration and braking—wastes fuel, idling consumes fuel while the vehicle is not moving, and efficiency usually drops quickly at speeds above 50 mph.

Refuel at partner stations

Many fuel stations have points and discount systems or partner clubs. You need to take advantage of these opportunities, provided the fuel is good quality, to reduce your transport operation's costs.

If you refuel with adulterated fuel, consumption will increase, along with negative effects on the engine and vehicle performance.

Optimize routes

Creating better routes involves more than finding the shortest path. You actually need to check traffic, the number of traffic lights, peak times, the number of speed bumps, and so on.

You should also consult the driver when planning operational routes. Although excellent route planning systems contribute a great deal to this task, the driver's experience and knowledge should be used.

Some factors are sometimes overlooked by technology—such as potholes, roadworks, local traffic restrictions, stopping points, and stretches where the vehicle tends to spend more time stationary.

Pay attention to gear changes

Gear changes and using the wrong gear cause the vehicle to “jerk,” shake, or work harder to move. All of this indicates an increase in the fleet's fuel consumption.

This issue is directly linked to driver training and skills development, since drivers are solely responsible for this aspect. Your task, therefore, is to seek the best courses, talks, and training for your fleet—also acquiring a way to assess drivers, guide economical driving, and create a bonus score scheme.

Use open windows or air conditioning appropriately

Again, this means instructing drivers on best practices for economical and efficient driving. As a general rule, windows can be left open at lower speeds, especially during urban distribution.

Air conditioning tends to make more sense on long trips and at highway speeds. In this case, leaving windows open increases air resistance, and the vehicle uses more energy to “fight” the issue. On the other hand, using air conditioning unnecessarily, or at a lower temperature than needed, also reduces fuel economy.

Carry out preventive vehicle maintenance

Preventive maintenance, when carried out correctly over the long term, may not be the ideal way to reduce costs immediately. However, it is crucial for avoiding increased fleet expenses.

Through it, the vehicle is inspected and the driver points out what may need attention. This prevents mechanical failures during trips, avoids accidents, and reduces repair expenses.

Select the right type of lubricant

Different engine types need specific lubricants for better performance. While some need more viscous oil, others need the opposite.

What happens if you use a lubricant that is not recommended?

Lower-viscosity oil in an engine recommended to use high viscosity will not provide the necessary protection in some cases. Likewise, in the reverse situation, the engine needs to work harder to keep running—increasing the vehicle's fuel consumption and even reducing the engine's useful life. Using the oil type recommended by the manufacturer can improve fuel economy by 1% to 2%.

Carry out tire calibration

Underinflated tires make the engine work harder to move the vehicle. That is why checking and adjusting tires to the correct pressure is essential.

This care also ensures better vehicle stability, tire durability, and operational productivity. It is worth having a tire control routine to keep calibration up to date.

Tires below the recommended pressure can reduce efficiency by about 0.2% for every 1 psi drop in average tire pressure; maintaining correct calibration can improve economy by 0.6% on average, reaching 3% in some cases.

To help with your management, we have prepared an essential tool: download the fleet fuel control spreadsheet for free (in Portuguese) and start using it!