Fuel management ranks among the top cost burdens in construction, outpaced only by labour expenses. In construction and infrastructure operations, efficiently controlling fuel spending is a major challenge. Fuel is inherently expensive and its cost continues to climb steadily. The Minister of Road Transport and Highways in India, Nitin Gadkari states, ‘In a road construction project worth ₹1,000 crore, approximately ₹100 crore is allocated solely for diesel expenses (i.e., about 10%).
According to Heavy Equipment Market Insights, fuel-related operating costs for heavy machinery account for approximately 42% of total operating expenses, underscoring the importance of tracking fuel usage. This heightened fuel expenditure makes robust fuel-tracking systems essential for maintaining financial control in construction operations.
Let’s understand the fuel monitoring system for construction and infrastructure sectors and see how it can assist business processes.
The Need for Fuel Tracking in Construction
Fuel management remains one of the highest expenses for construction businesses. Across construction and infrastructure projects, controlling fuel costs is a persistent and growing challenge. Not only is fuel expensive, but its prices continue to rise, making effective fuel tracking an essential practice. According to the International Energy Agency, the construction sector consumes 30% of the global final energy. In addition to that, it ranks third for global greenhouse gas (GHG) emissions.
Fuel tracking for the construction sector can help businesses achieve their sustainability goals in a streamlined and easy way. So, there’s a serious need for a fuel usage tracking solution. However, fuel management in the construction sector is not without its challenges.
Let’s look at some of the challenges construction businesses face, related to fuel management.
Rising Fuel Costs: The Hidden Drain on Construction Projects
Fuel Theft
Construction sites are primarily vulnerable to fuel thefts due to the valuable and easily transportable nature of fuel. It can be carried out discreetly by employees, contractors, or even external thieves, making it easier for these individuals to go unnoticed while siphoning fuel. This raises the concern of implementing fuel tracking in the construction sector to prevent unauthorized access to fuel storage areas.
Inventory Management
Maintaining a record of fuel inventory across different construction sites is challenging because of the varying demands and dynamic consumption patterns across different construction sites. In addition to that, issues related to record-keeping also lead to inefficient management of fuel inventory which can result in running out of fuel when needed.
Storage & Handling Regulations
Compliance with environmental and safety regulations for fuel storage and handling is complex. Construction companies need to invest in appropriate storage facilities to ensure adherence to local and federal regulations.
Budgeting & Cost Control
Due to unexpected fuel usage and inaccurate fuel records, managing fuel costs within a construction project’s budget becomes an issue. fuel tracking in the construction sector can help businesses remain up to date with fuel usage across different sites.
Fleet Maintenance Scheduling
Regular maintenance of equipment and vehicles is necessary for fuel efficiency. However, balancing maintenance schedules with project deadlines is a logistical challenge. This can easily be tackled with the mileage records of fleet vehicles.
How Construction Sector Benefits from Fuel Tracking System?
Construction projects depend extensively on heavy equipment i.e. trucks, cranes, excavators, bulldozers, backhoes, and more. The backbone of these machines is diesel, which remains the dominant fuel source across the infrastructure and construction industry. Given the high costs and growing volatility of fuel prices, monitoring consumption has become a strategic necessity rather than just an operational task.
Implementing a fuel tracking system empowers construction and infrastructure companies to:
- Cut costs by reducing wastage and unauthorized usage
- Boost efficiency through optimized equipment utilization and smarter scheduling
- Enhance maintenance by identifying fuel-related performance issues early
- Lower environmental impact by minimizing emissions and improving sustainability
Improved Cost Efficiency
Fuel tracking for the construction sector provides insights into how machines and vehicles are consuming fuel. This way construction companies can reduce their fuel wastage, detect fuel theft, and promote efficient fuel usage.
Accurate fuel consumption data helps in budgeting and cost control. It allows construction companies to allocate resources more efficiently and reduce fuel-related expenses. In addition to that, understanding fuel usage patterns helps in better project planning. Companies can ensure that there is a sufficient fuel supply to meet project demands, preventing delays and interruptions.
FleetRobo, a product of Binary Semantics, provides fuel monitors with varying depth fuel sensors that can accurately detect fuel usage and give a detailed usage report. Moreover, the smart alert system with FleetRobo’s fuel monitoring solutions can instantly generate notifications for abnormal fuel usage. So, in case of potential fuel thefts, businesses can take swift actions with the fuel monitoring system.
Enhanced Operational Productivity
Fuel tracking in the construction sector can also help companies enhance operational productivity by providing real-time data on fuel consumption and vehicle performance. Companies can use this data to reduce idle time and improve their operational performance.
FleetRobo’s fuel monitoring system offers idle engine tracking mechanism. So, whenever a vehicle remains still at a position with its engine turned on, the system keeps track of the fuel usage. And the GPS tracker transmits real-time location data.
Info Insight: Eliminating 4 hours of idling per day at Ahmedabad’s Swastik Intersection is expected to result in savings of approx. Rs. 9000.
Reduction in Carbon Footprint
Reducing carbon footprint by promoting sustainability and lowering greenhouse gas emissions. Transitioning towards cleaner transportation practices not only helps protect the environment but also improves air quality and public health. Sustainable fleet operations contribute to long-term cost savings, brand reputation, and compliance with evolving environmental regulations.
For example, FleetRobo’s fuel monitoring system gives detailed reports of the vehicle’s run-time along with its mileage reports. So, businesses can use this data to determine carbon emissions for specific vehicles and minimize their carbon footprint.
Info Insight: It’s projected that the global construction sector will still not achieve decarbonization by 2050.
Regulatory Compliance
Staying compliant with environmental and transportation regulations is essential to operate smoothly. Companies are now expected to track and report their fleet emissions, fuel consumption, and overall environmental impact. Adhering to these standards not only helps avoid penalties but also builds credibility with stakeholders, ensures smoother operations, and aligns businesses with national sustainability goals.
Fuel tracking in the construction sector helps companies comply with these regulations to avoid penalties and fines. FleetRobo’s analytical reports help businesses get a detailed overview of all their vehicles from a single dashboard. So, in a single click, you can view idle time, mileage report, and fuel consumption report and generate a tabular view of this data for better analytics.
Route Optimizations
Construction vehicles are often big in size and are quite hard to manoeuvre quickly in case of potential diversions. In addition to that, if stuck in traffic the reporting time could be significantly extended. So, a fuel tracking system here can be used to optimize routes and enhance vehicle’s reporting and delivery times.
FleetRobo’s fuel tracking device is equipped with real-time GPS trackers. So, vehicle route from it start till its destination journey along with vehicle metrics is recorded in the backend. Construction companies can analyze this data and find an optimal route which aligns with their fleet goals (shortest route, minimal traffic, etc.).
Info Insight: According to Locus, route optimizations can save up to 20% in vehicle mileage.
Vehicle Safety
While construction vehicles are generally more difficult to steal due to their size and operating requirements, the risk of theft can never be completely ruled out. A robust fuel monitoring system not only helps track and optimize fuel usage but also adds an extra layer of assurance by enhancing vehicle security and reducing the chances of unauthorized use.
FleetRobo fuel monitoring solution comes with an inbuilt geofencing system. So, construction businesses can set predetermined area restrictions for the vehicles to go around. In case this geofence is breached, the system will generate instant alert. Moreover, with remote immobilizer functionality, businesses can effectively stop vehicle movement from a command center in case of vehicle theft.
Predictive Maintenance
A Nucleus Research study states that, when provided with predictive maintenance, vehicles have been found to reduce 35-50% and extend the assets’ lifespan by 20-40%.
However, determining when a vehicle needs maintenance depends upon various factors like its uptime, traveled distance, mileage, etc. An optimal fuel tracking device collects all this information and helps businesses derive maintenance schedules.
FleetRobo’s fuel monitor reports display the mileage of vehicles for individual trips, uptime, traveled distance, time taken, and many other minute details. This data is displayed in the analytics dashboard both from the mobile device and command center. By scheduling maintenance based on actual usage and engine hours, companies can prolong the lifespan of their equipment.
Conclusion
Fuel tracking in the construction sector is more than just a management tool, it’s a strategic defense against fuel theft, inefficiency, and escalating costs. By providing real-time visibility into consumption patterns, it empowers businesses to cut wastage and optimize equipment performance. Beyond cost savings, it also plays a crucial role in reducing emissions, making construction operations both more profitable and environmentally responsible. In an industry where margins are tight and sustainability pressures are rising, fuel tracking is fast becoming a competitive advantage.
So, as the construction sector continues to evolve and expand, don’t be left behind. Embrace the power of FleetRobo’s fuel monitoring today. And watch your business soar to new heights of efficiency, cost savings, and environmental responsibility.
