Diesel Prices Spur Fleet Interest in Fuel Cost Reduction
Uncertainty over the direction in which diesel prices are heading is prompting fleet operators to explore on-board solutions, such as GreenRoad's driver behavior and fleet performance system, which minimize the impact on overall costs, according to the company.
Uncertainty over the direction in which diesel prices are heading is prompting fleet operators to explore on-board solutions, such as GreenRoad's driver behavior and fleet performance system, which minimize the impact on overall costs, according to the company.
With fuel accounting for up to 30 percent of corporate fleet budgets, fluctuating oil prices have fleets seeking to reduce the risk to profitability from volatile operating costs. Mitigating the impact of fuel price uncertainty is now a priority for fleet managers who are looking for sustainable solutions.
GreenRoad's cloud-based solution delivers measurable fuel cost savings by effecting long-term and sustainable changes in driver behavior through a continuous self-correction cycle. Based on effective change management methodology, GreenRoad encourages drivers to adopt a safer and more fuel-efficient driving style, eliminating maneuvers that increase fuel consumption, such as speeding, rapid lane switching, avoidable heavy braking and sharp acceleration, according to GreenRoad.
Given that these maneuvers are potentially dangerous as well, GreenRoad's SaaS solution provides excellent return on investment. In addition to increasing fuel economy, it also cuts accident-related expenses and lowers insurance premiums, according to the company.
GreenRoad customer Iron Mountain, the global leader in information storage and management, accrued savings estimated at around $3 million over three years on fuel, accident-related costs and insurance premiums by implementing the system. Fuel efficiency rose 15 percent.
While diesel has fallen from its peak of $4.16 in 2013, prices continue to fluctuate. Oil producers have started to scale back less profitable operations, reducing supply and stirring fears of further price hikes, and the U.S. Energy Information Administration forecasts that average prices will top $3.20 in summer 2016.
In the past few months, six successive weekly rises briefly pushed the price above $3.26 a gallon in California and to a U.S.-wide average of $2.91 a gallon in May until prices subsequently subsided, falling to under $2.62 last week, the lowest level since October 2009.
Originally posted on Automotive Fleet
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