Fuel represents the largest vehicle-based operating expense for trucking companies. On average, carriers spend around $50,000 to $70,000 per year on fuel and it makes up about 24% of total costs. With the diesel fuel trajectory showing a possible upward slope on prices in 2021, carriers must find ways to mitigate their fuel expenses.
For the past nine consecutive weeks, diesel prices have increased, posting the longest run in almost three years. Although some signals in the market suggest that this trend will slow down in the near future, fuel prices in the long run will take off.
Many variables impact fuel prices which cause volatile predictions. But one of the main variables that suggests an increase in fuel prices this year is vaccine distribution. As the vaccine becomes widely distributed, states loosen travel restrictions, and the global economy continues to recover, we will see some modest impact on prices at the pump due to higher oil demand.
Ways to Lower Fuel Expenses
Carriers must be prepared for a likely increase in diesel prices from last year, so it’s important to economize on fuel expenses and adopt cost-saving practices. One way that truck drivers can save on fuel is to conduct regular maintenance checks such as inspecting tire pressure and replacing old fuel injectors. Truck drivers should also reduce their speed and use cruise control when possible.
Another way to save on fuel is to adopt a fuel savings program that can help find the lowest fuel prices while on the road. At Single Point Capital, we offer a fuel savings program that will get you access to apps and tools to help manage expenses by finding the lowest fuel prices among other benefits sucks as discounts on tires. We also offer fuel credit lines up to 20% of your monthly revenue volume so that your trucks stay fueled and moving. This fuel program is exclusive to clients enrolled in our factoring program. Our factoring program can also ease some cash flow constraints by turning receivables into cash within 24 hours. If you want to boost your cash flow and budget your fuel expenses, get started today and experience the Single Point difference.