A large fleet of vehicles relies on a constant supply of fuel, but this operating cost is probably not as simple or easy to measure as you may think. You may simply see your fuel costs as a fixed line in your operating expenses, but the true cost of keeping your vehicles on the road is probably higher, especially if your vehicles return to the yard every day and/or make a lot of short trips. Mobile on-site fleet fueling is one way you can control and manage this important part of your operating expenses. Find out how on-site fleet fueling can save a business like yours money, and learn more about the benefits of this service.
Savings on driver time
Vehicle fleets that return to the yard every day often rely on drivers to refuel their vehicles. At face value, this seems sensible. After all, the driver is out on the road anyway, so it makes sense that he or she can simply stop off and fill up as and when required.
In reality, this way of working costs your business money. The time a driver spends refueling his or her vehicle is a hidden operating expense for your business. Drivers may go out of their way to use a certain gas station, increasing the amount of time wasted. What's more, the time they spend at the pump is still time that costs your business money.
Where fleet vehicles make shorter trips and return daily to the yard, mobile on-site fleet fueling services remove these inefficiencies. Drivers only spend their time driving, and your supplier manages the cost of time spent refueling.
Improved business controls
Fleet managers often issue drivers with fuel cards, so that employees don't have to pay the cost of fuel expenses and then reclaim at a later stage. However, fuel is an expensive commodity within your business, so it's unsurprising that these systems can lead to hidden costs.
It's difficult to stop drivers fueling their own vehicles with these cards, especially for small amounts of fuel. Drivers may also lose or forget to collect the receipts or invoices you need to process the transactions each month, so you may not get the benefits of centralized accounting. However, on-site fleet fueling remove the need for your drivers to get involved, cutting out these unwanted costs. The on-site fueling supplier manages every part of the transaction.
More effective price management
If each of your drivers fuels his or her vehicle at a different station, you could end up paying different costs for every gallon. A couple of cents per gallon can mount up to a significant amount of money when you consider every vehicle in your fleet.
Mobile on-site fueling services give you a consistent and predictable price across your fleet. These specialist companies also offer tremendous purchasing power, so you're also more likely to benefit from the best price that's available on the market.
Some fleet owners decide to install their own on-site storage tanks, so drivers can fuel up their vehicles when they return to your headquarters. While fueling their vehicles, drivers may inadvertently spill fuel, and even a small amount of gas lost each time can soon mount up over the weeks and months.
What's more, serious spillages can result in an environmental hazard. Your business is responsible for any hazard created, so you have the added overhead of making sure everyone knows what to do if there is a major incident. By using a mobile on-site supplier, you don't need to worry about the costs of safety and training associated with your drivers using on-site storage tanks.
Improved tax benefits
There are possible tax benefits for fleet owners using a mobile on-site fleet fueling service. In the United States, the Heavy Vehicle Use Tax (HVUT) applies to all vehicles that weigh more than 55,000 pounds, but some vehicles are exempt from the charge. Commercial vehicles are exempt if they don't travel more than 5,000 miles per year.
As such, vehicles that regularly stay in your yard are often exempt from this tax. However, to benefit from this exemption, you must give the IRS detailed records that show you did not exceed this limit. On-site fueling services give you the information you need for every vehicle in your fleet. In turn, this makes it easier to apply for the IRS exemption for HVUT.
A fleet fueling delivery service can help your business save a significant amount of money. Talk to a provider in your area for more information or advice.