Strategic Fuel Management (Part One)

Fuel price hike

Fuel price hike

In Nigeria, there used to be a time, some 14years up to the first few months of the return to civilian democracy, when a few tanks of fuel went missing and nobody really cared; helping yourself to company’s fuel was considered a perk. But times have changed:

 

Diesel cost has not only gone up, but gone through the roof!

The road has become more deplorable hence more fuel is lost to idling and traversing longer and crooked but fair routes.

There has been a steady increase in incidence of diesel contamination which not only leaves collateral damages on the vehicle’s engine but burns faster than the good ones.

 

Now, fuel has assumed the status of a formidable asset that can be measured for a return on the investment and every drop of fuel that does not fit into the equation drives profits down drastically.  Haulage companies of all sizes especially the smart and performance-focused ones, have had to device various means of insulating their businesses against the heavy cost burden associated with fueling. Some have gone further to ratchet up security towards protecting themselves against fuel thieves from outside and inside their businesses and this is not just about building a better fence; it’s about taking concrete control of an escalating problem.

In this paper, we shall examine some measures which can be taken to create a culture of effective fuel management with a view to holding down the escalating cost burden associated with fuel. A critical examination of the options available will be done under the following the heading:

 

Proactive vehicle selection and matching

Responsible driving culture

Deployment of fool-proof fuel discharge and usage system

 

PROACTIVE VEHICLE OR ASSET SELECTION AND MATCHING

At the most fundamental level, reducing fuel cost ultimately comes down to a choice between two strategies: improving the fuel economy of existing vehicles and acquiring newer, more fuel-efficient models. It is more like a choice between fleet working with what they have or investing in newer and more fuel-efficient range of trucks; whatever choice is taken will surely result in significant saving. At best, the new trucks will automatically result in a more impressive Km/Ltr ratio and at worst, managing old fleet will create the alertness to fuel saving which will invariably lead to the adoption of other fuel-conserving strategies.

Talking about acquiring new fleet for example, the highly tropicalized export range of new trucks on sale in the Nigerian market are generally known to be more resilient to fuel contamination and also fuel-efficient for our kind of roads. A proactive vehicle selector will likewise take a keen interest in the size of the engine and level of conformity with advancement in vehicle technology.

Appropriate matching of the right vehicle to the right route and the right load is also another simple way to increase fuel economy and reduce fuel consumption. In an environment like ours which is lacking in the new generation fuel monitoring gadgets or vehicle modifications, making an informed choice on what vehicles offer the best fuel efficiency per route can be a cost-effective way to spend less on fuel. It beats the commonsense to see 30ton 3-axle long-back heavy-engine trucks making neighbourhood urban deliveries- look around and you will be amazed at the pervasiveness! Cost savings disappear like smoke in the face of the double-hit effect of aggravated fuel consumption and quality time plus fuel lost to inescapable idling due to lack of maneuverability and traffic congestion.

While engine size and type can make a big impact on fuel economy, so can the weight of the vehicle. Composite-body vehicles can make vehicles hundreds of pounds lighter than their traditional counterparts; the lighter the vehicle, the more fuel efficient. Excessive loading also makes vehicle heavy for the journey and causes sub-optimal fuel utilization. Fleet owners will assist the fortune of their businesses by not giving in to the temptation of excess loads for a little more freight income that really doesn’t add up.

……………………………………….To be Continued in Part Two.

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