Insights from FORS recent webinar from fuel expert Portland Analytics and FORS Director
In a recent FORS webinar titled Smart strategies for cutting fuel costs, industry expert Mike Johnson and FORS Director Geraint Davies shared valuable insights to help operators reduce their fuel expenditure. The discussion covered critical areas such as:
- Understanding fuel pricing.
- Market trends.
- Optimising the different fuel purchasing methods.
Fuel costs are one of the largest operational expenses for fleet operators, but the webinar covered several practical strategies that can help reduce overall fuel expenditure.
Here are some key approaches to consider:
- Understand fuel pricing and market trends
Fuel prices can fluctuate due to various factors such as global market trends, currency exchange rates, and government regulations. Keeping track of these influences can help fleet operators make smarter purchasing decisions. Staying informed allows operators to anticipate price changes and, where possible, purchase fuel when prices are lower.
- Choose the right fuel purchasing method
There are two primary methods for purchasing fuel: contract purchasing and spot purchasing. Each has its own benefits and challenges:
- Contract purchasing: This approach provides price stability by agreeing to a fixed premium for fuel over a certain period. This helps businesses predict costs more accurately but typically requires a committed purchase volume.
- Spot purchasing: This method offers flexibility, allowing operators to purchase fuel as needed and potentially benefit from lower prices when market rates drop. However, there is no guarantee of supply security, and prices may spike unexpectedly.
A balanced approach that combines both methods can help operators manage costs while ensuring consistent fuel supply.
- Manage fuel cards effectively
Fuel cards are a convenient way for operators to manage fuel purchases, but they can also lead to rising costs if not properly managed. To keep costs in check, operators should:
- Regularly review fuel card agreements to ensure they remain competitive.
- Negotiate fixed margins with fuel card providers to avoid unexpected price increases.
- Compare different fuel card providers to find the best rates and service options.
Effective fuel card management can lead to more predictable fuel expenses and reduce unnecessary costs.
- Optimise fuel storage and delivery
For fleet operators with on-site fuel storage, careful management of storage and delivery can lead to significant savings. Some practical steps include:
- Ordering full-load deliveries to reduce the cost per litre.
- Monitoring fuel usage to minimise emergency refuelling at higher prices.
- Implementing fuel usage tracking systems to identify and address inefficiencies.
By optimising fuel storage and usage, operators can reduce both fuel costs and the environmental impact of their operations.
- Stay informed and seek expert advice
Keeping up to date with global fuel market trends and regulatory changes can help operators make smarter purchasing decisions. Additionally, seeking professional advice from fuel procurement specialists can offer insights into reducing costs and improving purchasing strategies.
Implementing these strategies can help fleet operators significantly reduce fuel costs while maintaining operational efficiency.
For access to the full webinar recording on YouTube click here.
To access the presentation PDF, click here.
For more information on Portland’s fuel procurement advisory services and to schedule an initial, no-obligation review, please contact:
Mike Johnson
- Email: [email protected]
- Tel: 01904 488803