In today’s fast-paced business world, fleet managers and operators constantly seek innovative methods to save money and streamline operations for maximum efficiency. With fuel costs representing a significant chunk of a company’s budget, the advantages of switching to mobile fueling are gaining attention every day.
On average, fuel expenses account for 1/3 of a company’s total fleet operating budget. Yet, fueling is often seen as an inefficient cost that can’t be avoided. In this article, we will explore two key benefits of adopting mobile fueling for your fleet. You can also get more information about mobile fueling here.
Rack to Retail Spreads
If your drivers are filling up at the pump, you’re paying a retail premium that’s risen as high as $1/gal in recent years. Even before the volatility of 2020-23, retail premiums could make up 40 cents or more of your fuel costs.
With mobile fueling, you pay based on wholesale fuel prices – typically with a rack index such as OPIS. While you will still pay a premium over OPIS to have the fuel delivered and pumped into your vehicles, this premium is often offset by widening spreads between wholesale rack prices and retail prices. Ask your fuel supplier about local rack-to-retail spreads – it may turn out that mobile fueling can offer comparable or lower prices, with all the convenience of fuel delivered directly to your equipment.
Saving Money, Mile by Mile
Driving extra miles just to refuel adds up quickly. On average, it costs about $2.50 to $3.00 for every mile a vehicle travels, considering different expenses like vehicle maintenance, labor, and fuel. If your driver has to drive 3 extra miles just to refuel, you end up spending an additional $9 on transportation costs. That’s more time on the road and more money spent on fuel. And don’t forget the time that you’re paying your driver to sit at a gas station or truck stop, rather than doing their job.
Doing the quick math, daily gas station visits cost around $2,300 per vehicle each year, and that’s not even counting the money lost due to drivers waiting at gas stations instead of working. Mobile fueling cuts these costs significantly, helping fleet managers save money and time that can be better used elsewhere.
Switching to mobile fueling is a smart move for fleet owners looking to simplify operations and boost their bottom line. It’s all about saving time and cutting unnecessary expenses. As companies recognize these advantages, mobile fueling is becoming a game-changer in the world of fleet management.
Is Mobile Fueling Right for You?
Mansfield offers a free tool that lets you calculate your potential labor savings should your business convert to a mobile fueling service. Contact an expert at Mansfield to learn more about this cost-saving opportunity.