India’s transportation energy demand has been growing at the fastest rate globally, averaging an annual increase of 6.8% since 2000. Approximately 90% of this surge stems from oil consumption in road transport (IEA, 2015).
As per the Petroleum Planning and Analysis Cell of the Ministry of Petroleum and Natural Gas (MoPNG), nearly 87% of diesel consumption in India is attributed to the transport sector (Petroleum Planning and Analysis Cell, 2021).
Understandably, the quest to reduce fleet fuel costs is real since it constitutes a major portion of operational expenses for Indian fleet companies, particularly across logistics, manufacturing, and service-oriented sectors. Industry estimates indicate that fuel expenses account for nearly one-third of total fleet costs in India, underscoring the importance of strategic fleet fuel cost management to ensure profitability and competitiveness.
This financial burden is exacerbated by the fluctuating nature of fuel prices, supply chain inefficiencies, and the growing demand for transportation in a rapidly industrializing economy.
The challenges to achieving fleet fuel efficiency are multifaceted.
- A significant barrier lies in the lack of consistent driver training programs, which could otherwise encourage fuel-efficient driving behaviors.
- Additionally, poor vehicle maintenance practices, including irregular servicing and neglect of key components like tires and engines, contribute to higher readings on fuel consumption monitoring system.
- Limited adoption of advanced technologies, such as aerodynamic devices, telematics systems, and alternative fuels, further hampers efforts to optimize fuel usage.
Addressing these challenges requires a comprehensive approach, combining employee education, robust maintenance schedules, and investments in technology. Implementing effective fuel reduction strategies can help you not only reduce your fuel expenses but also align with global sustainability goals — reducing your carbon footprint and enhancing operational efficiency.
Government’s Take to Reduce Fleet Fuel Consumption
Fuel Consumption Standards for Heavy-Duty Vehicles
In March 2022, MoRTH in association with the Ministry of Power, finalized fuel efficiency norms for commercial vehicles with a GVW of 12 tonnes or more. Manufacturers must demonstrate compliance through the Constant Speed Fuel Consumption (CSFC) test procedure, which involves operating vehicles at specified constant speeds on a test track. This initiative targets a significant reduction in fuel consumption and greenhouse gas emissions from heavy-duty vehicles.
Promotion of Liquefied Natural Gas (LNG) in Heavy-Duty Vehicles
In a move to reduce vehicular pollution, the Indian government plans to transition a significant portion of its heavy-duty long-haul trucking fleet to liquefied natural gas (LNG) from diesel over the next five to seven years. This initiative aligns with India’s goal to increase the share of natural gas in its energy mix and reduce greenhouse gas emissions.
Highly Effective Strategies to Reduce Fleet Fuel Costs
Avoid Aggressive Driving
Aggressive driving behaviors like “jack-rabbit” starts and sudden braking can significantly increase fuel consumption—by as much as 40%. In urban areas, nearly 50% of the energy needed to power vehicles is used for acceleration. Encouraging smooth and consistent driving practices can reduce fuel wastage, enhance vehicle longevity, and lower emissions.
Adhere to Optimal Speed Limits
Speeding dramatically impacts fleet fuel efficiency. Studies indicate that increasing highway cruising speeds from 90 km/h to 120 km/h can raise fuel consumption by 20%. Moreover, driving at 50-80 km/h is considered the “sweet spot” for most vehicles, optimizing fuel efficiency. Indian companies should ensure drivers are trained to maintain optimal speeds, reducing fleet fuel costs and also the risk of accidents, which we have discussed later in the article.
Minimize Engine Idling
Unnecessary idling wastes fuel and contributes to wear and tear on the engine. For instance, discretionary idling in trucks—used for air conditioning, heating, or powering appliances—can consume over a billion gallons of diesel annually. Surveys say that the average long-haul truck will idle anywhere from six to eight hours a day for as many as 250 to 300 days each year. Policies to limit idling, especially during stops longer than 30 seconds, can significantly help with fleet fuel cost reduction.
Maintain Proper Tire Pressure
Under-inflated tires can increase fuel consumption by up to 6%. Monthly tire pressure checks, preferably when tires are cold, can prevent under-inflation and its associated costs.
- Radial tires can be underinflated yet still look normal. Always use your own tire gauge for consistent results. On average, tires lose about 1 psi per month and 1 psi for every 10-degree drop in temperature.
Each 1 psi drop in tire pressure results in a 0.5-1% reduction in fleet fuel efficiency. Proper tire inflation also reduces rolling resistance, thereby saving fuel and enhancing road safety.
Choose the Right Tires
Tire rolling resistance accounts for about 13% of truck energy use. Opting for single wide-base tires instead of dual tires can improve fleet fuel economy by 2-5%. These tires reduce overall vehicle weight by up to 1,000 lbs, allowing for lower fuel consumption or increased cargo capacity.
Preventive Maintenance
A well-maintained engine is crucial for fuel efficiency. Poorly tuned engines can consume up to 50% more fuel and produce equivalent increases in emissions. Regular maintenance, such as timely oil changes, air filter replacements, and engine diagnostics, ensures optimal performance and cost savings. A well-developed fleet preventive maintenance program can help fleets reduce fuel consumption in the 5-10% range.
Implement Driver Training Programs
Driver behavior significantly influences fuel consumption. Training programs focused on techniques like smooth acceleration, gradual braking, and efficient gear shifting can improve fleet fuel economy by 5% or more, and save over $1,200 in fuel costs per vehicle each year.
- According to ATA’s Technology and Maintenance Council (TMC), the most skilled drivers can produce as much as 35% better mpg than less-skilled truck operators.
Using electronic engine monitors to track driving patterns allows companies to benchmark performance and offer incentives for fuel-efficient driving. Regardless, well-trained drivers can reduce fuel consumption by applying a number of simple techniques including —
- Driving at the lowest engine speed possible.
- Using cruise control where appropriate.
- Braking and accelerating smoothly and gradually.
- Using progressive shifting techniques (upshift at the lowest rpm possible).
- Block shifting (for example, go from 2nd gear to 5th gear).
- Coasting wherever possible.
- Limiting unnecessary truck idling.
- Starting out in a gear that doesn’t require the use of the throttle when releasing the clutch.
- Limiting unnecessary shifting.
- Limiting the use of cab accessories to reduce parasitic energy losses.
Manage Vehicle Weight
Reducing vehicle weight is an effective way to save fuel. A 10% reduction in weight can increase fuel efficiency by 6-8%. Incorporating lightweight materials like aluminum and advanced alloys in vehicle design can lower empty truck weight, enhance fleet fuel efficiency, and reduce greenhouse gas emissions.
Enhance Vehicle Aerodynamics
Improving aerodynamics can significantly reduce drag and improve fuel economy. For instance, cutting drag by 25% can boost highway fuel efficiency by 15%. Using a streamlined tractor with aerodynamic devices will help with fleet fuel cost reduction by over $800 per year, EPA estimates. Companies can invest in aerodynamic devices such as roof fairings, cab extenders, side fairings, and gap-sealing technologies, which have demonstrated fuel savings of 4-4.5% in real-world applications.
Opt for High-Performance Lubricants
The choice of lubricants and oils plays a crucial role in fleet fuel economy. Synthetic transmission and axle lubricants can improve fleet fuel efficiency by up to 2% in winter and 0.5% in summer. Low-viscosity synthetic engine oils combined with drivetrain lubricants can collectively enhance fuel economy by 3%, saving hundreds of gallons of fuel annually.
Solutions For Improved Fuel Tracking and Efficiency
Fleet Fuel Monitoring System
Fuel monitoring systems for vehicles provide real-time data on fuel levels, consumption patterns, and refueling activities. These fuel monitoring solutions help detect fuel theft, monitor vehicle efficiency, and identify discrepancies in fuel usage. By ensuring precise fuel tracking, companies can reduce wastage, improve operational transparency, and achieve significant cost savings, ultimately enhancing overall fuel efficiency.
Route Management Solutions
Route management solutions like employee transportation management use advanced algorithms and GPS technology to optimize travel routes. These tools minimize unnecessary mileage, reduce idle times, and avoid traffic congestion, ensuring efficient fuel usage. By planning the most efficient routes, businesses can reduce fleet fuel costs, enhance delivery times, and reduce wear and tear on vehicles.
Fleet Management Solutions
Comprehensive fleet management systems integrate fuel monitoring system for fleet, route optimization, and vehicle maintenance into a single platform. They provide actionable insights into driver behavior, vehicle health, and operational efficiency. By streamlining these aspects, companies can ensure timely maintenance, reduce fuel consumption, and achieve better overall fleet performance, contributing to both cost savings and sustainability goals.
Immediate Steps to Reduce Fuel Costs for Fleet Managers and Drivers
Closing Remarks on Fleet Fuel Cost Reduction
Improving fuel efficiency and reducing fleet fuel costs is essential for multiple reasons. It directly impacts a company’s bottom line by lowering operational expenses, enabling businesses to allocate resources more effectively.
Additionally, reduced fuel consumption helps decrease greenhouse gas emissions, contributing to environmental sustainability. With increasing regulatory pressure and growing consumer awareness, adopting fuel-efficient practices also enhances a company’s reputation and aligns with global sustainability goals.
Investing in such innovations not only enhances operational efficiency but also ensures long-term profitability and competitiveness in a fast-evolving market. Implementing advanced fleet fuel monitoring solutions is crucial for companies aiming to reduce fuel consumption and improve efficiency. These technologies help identify inefficiencies, promote responsible driving habits, and ensure timely maintenance, ultimately leading to substantial cost savings.
