Fuel Efficiency: How to Cut Fuel Costs in 2024

Fuel efficiency is a HUGE opportunity for you to save money.

In fact, fuel expenses amount to 25% of your total transportation costs.

So it makes sense to reduce fuel consumption to lower operational expenses.

And in this guide, we’re going to show how to do EXACTLY that.

So if you’re looking to: 

Lower your fuel costs.

Increase mileage per vehicle.

And get more tasks done.

(Using the same amount of petrol.)

Then you’ll appreciate the actionable techniques to improve fuel efficiency laid out in this guide.

Let’s get started.

• What Is Fuel Efficiency
• What Determines Fuel Efficiency
• What Affects Fuel Consumption
• Why Route Efficiency Drives Real Savings on Fuel Costs
• How Do You Improve Fuel Efficiency with Route Optimization Software
• How Much Fuel Does Route Optimization Software Actually Save You

What Is Fuel Efficiency?

Fuel efficiency is a form of measuring how much energy in fuel vehicles can convert into kinetic energy to travel.

Simply put:

Fuel efficiency shows how far your vehicle can travel with a certain amount of fuel. Otherwise known as miles per gallon (mpg) or kilometers per liter (km/l).

What Determines Fuel Efficiency?

Fuel efficiency is determined by how much fuel your vehicle consumes: fuel consumption.

And the distance the vehicle travels using that amount of fuel: mileage.

For example, a Ford Transit Connect can cover 26 miles on average per gallon of gasoline.

But different things affect your vehicle’s fuel consumption and its mileage.

What Affects Fuel Consumption?

Here are eleven factors that affect fuel consumption and the percentage that shows how much you can save by optimizing each one:

#1 Mileage (100%)

The number one thing that affects how much fuel your vehicle consumes to travel a specific distance (mpg or km/l).

#2 Vehicle (100%)

The second most important thing that affects fuel consumption is the vehicle. Different vehicles have different energy efficiency. And that has a significant impact on their fuel economy.

#3 Engine Maintenance (4%)

Regular engine tuning helps to protect the longevity of your vehicle and maintains optimum engine performance. For example, not cleaning the engine’s air filters regularly increases the vehicle’s fuel consumption.

#4 Type of Oil (12%)

Motor oil helps to reduce friction in the engine. This helps the engine to run more efficiently, which improves your mileage. The best motor oils are synthetic friction-reducing, or those labeled as High Mileage Motor Oil.

#5 Type of Fuel (1-3%)

Lower quality fuel can reduce fuel consumption. Using low octane fuel requires more air to burn with no residue left behind. This makes the engine work harder to pull the additional air in, which makes it less powerful and efficient.

#5 Low Rolling Resistance (3%)

Rolling resistance is the energy lost from friction and drag of tires rolling on the road. Reducing rolling resistance by 10% can increase fuel efficiency by 3%. You can improve it by using winter vs. summer tires, and maintaining the right tire pressure of your tires.

#6 Tire Pressure (3%)

Low tire pressure can raise fuel consumption by 0.2% for every 1 psi drop in the average tire pressure for all the tires of your vehicle. On the other hand, keeping tires inflated to the proper pressure can raise fuel economy by up to 3%.

#7 Air Conditioning (25%)

Using the air conditioning turned on maximum power can raise your fuel consumption by 5-25%, when compared to not using it at all.

#8 Vehicle Weight (2%)

How heavy your vehicle is can increase the amount of fuel your vehicle uses. To reduce fuel consumption keep the weight of goods that you transport within the payload capacity suggested by the manufacturer.

#9 Driving Speed (14%)

Higher driving speed can increase the amount of fuel your vehicles use. Driving within the speed limit or using other ways of increasing delivery speed can help to extend your fuel tank.

#10 Aggressive Driving and Stop-and-Go (40%)

Aggressive driving and stop-and-go driving put pressure on your brakes and engine. That means the vehicle uses more fuel. Speeding can increase fuel consumption by 30%, and stop-and-go driving by as much as 40%.

#11 Vehicle Idling (19%)

Vehicles running in idle still consume fuel. In fact, for every hour of idle time due to traffic (for example) your vehicle consumes around 3 liters of fuel without moving an inch.

Why Route Efficiency Drives Real Savings on Fuel Costs?

Improving route efficiency is key to reducing fuel costs significantly. 

While enhancing gas mileage through better driving practices still works, reducing overall mileage for your fleet has a BIGGER impact.

To achieve that, be sure to integrate these strategies into your route planning:

• Shorter Trips: Increase delivery efficiency by minimizing the distance between stops through route optimization, thereby reducing fuel consumption.
  
  
• Cluster Fleets: Utilize geofencing to concentrate your fleets in specific areas, reducing fuel costs associated with extensive cross-town driving for individual deliveries.
  
  
• Cut Failed Deliveries: Implement order tracking to reduce the need for redelivery, improving efficiency and customer satisfaction while saving fuel.
  
  
• Optimize Multiple Stops Based on Mileage: Combine pick-up and delivery tasks within the same route to eliminate unnecessary repeat visits to the same locations. Doing so can effectively reduce your mileage and fuel usage.
  
  
• Automate Route Planning: Consider routing and scheduling software to streamline route optimization. This tool can optimize routes more swiftly and efficiently than manual planning, leading to faster fuel savings.

Consider automated routing and scheduling software instead of traditional manual route planning methods.

Use software like eLogii to automate your route planning to efficiently optimize your routes and achieve fuel savings more rapidly.

How Do You Improve Fuel Efficiency with Route Optimization Software?

Improving fuel efficiency with route optimization software involves leveraging advanced algorithms and real-time data to streamline your driving routes.

Whether you're managing a fleet of vehicles or simply looking to reduce fuel costs for personal travel, here’s how route optimization software can help you achieve better fuel efficiency:

• Optimal Route Selection: Route optimization software analyzes various factors such as traffic patterns, road conditions, and distance to determine the most efficient route. By selecting routes that minimize distance and avoid traffic congestion, you can significantly reduce fuel consumption. This means less time spent idling in traffic jams or taking longer routes unnecessarily.
  
  
• Real-Time Traffic Updates: The software integrates real-time traffic updates, allowing you to adjust routes dynamically to avoid congested areas. By steering clear of traffic hotspots and accidents, you can maintain a steady driving pace, which is crucial for fuel efficiency. Avoiding frequent stops and starts due to traffic delays helps conserve fuel and reduces wear on your vehicle.
  
  
• Distance Minimization: By calculating the shortest possible path between multiple stops or destinations, route optimization software ensures that you cover the necessary distance using the least amount of fuel. This is particularly beneficial for delivery services or businesses with regular route schedules, as it optimizes the efficiency of each trip.
  
  
• Speed and Acceleration Optimization: The software often provides recommendations for optimal driving speeds and acceleration patterns. Smooth, consistent driving at moderate speeds helps conserve fuel compared to erratic driving habits. By following these recommendations, you can achieve better fuel efficiency while maintaining safe and efficient driving practices.
  
  
• Vehicle-Specific Recommendations: Some route optimization software solutions take into account specific characteristics of your vehicle, such as fuel efficiency ratings and payload capacity. By tailoring route suggestions to match your vehicle's capabilities, the software ensures optimal performance and minimal fuel consumption based on your vehicle’s specifications.
  
  
• Route Prioritization: For businesses with multiple stops or deliveries, route optimization software can prioritize routes based on factors like delivery windows or geographic proximity. This minimizes backtracking and unnecessary detours, optimizing fuel efficiency by reducing overall mileage and travel time.
  
  
• Environmental Impact Reduction: Improving fuel efficiency also contributes to environmental sustainability. By reducing fuel consumption per trip, route optimization software helps lower carbon emissions and supports eco-friendly practices. This is increasingly important to reduce their environmental footprint.
  
  
• Data Analysis and Performance Monitoring: Route optimization software platforms offer performance monitoring and analytics tools. These features track fuel usage, route efficiency, and driver behavior over time. By analyzing these metrics, you can identify areas for improvement, refine driving strategies, and further enhance fuel efficiency.
  
  
• Cost Savings: Optimizing routes with software leads to significant cost savings on fuel expenses, because reducing fuel consumption per trip translates directly into financial savings. This allows you to allocate resources more effectively and invest in other aspects of your operations or personal budget.

How Much Fuel Does Route Optimization Software Actually Save You?

Route optimization software is a powerful tool that leads to substantial savings in fuel costs. 

To quantify the potential fuel savings, let's break down the scenario based on the provided parameters:

1. Average Fuel Consumption:

The average fuel consumption rate given is 2.8 liters per kilometer.

2. Fuel Cost:

The cost of fuel is specified as 0.91 USD per liter.

3. Average Distance Traveled Per Day:

The average distance traveled per day is 100 kilometers.

4. Expected Fuel Savings:

Route optimization software is estimated to save 10% on fuel costs by improving efficiency.

Calculation of Current Fuel Consumption and Cost

Firstly, let's calculate the current fuel consumption and cost without route optimization:

Current Fuel Consumption per Day:

Fuel Consumption per Day= Average Fuel Consumption× Average Distance Per Day

Fuel Consumption per Day= 2.8 liters/km ×100 km=280 liters

Current Daily Fuel Cost:

Daily Fuel Cost = Fuel Consumption per Day × Fuel Cost per Liter

Daily Fuel Cost = 280 liters × $0.91/liter (June 2024) = $254.8

Calculation of Fuel Savings with Route Optimization

Now, considering a 10% savings in fuel costs due to route optimization:

Expected Fuel Savings per Day:

Fuel Savings per Day = Current Daily Fuel Cost × Fuel Savings Percentage

Fuel Savings per Day = $254.8 × 0.10 = $25.48

Annual Fuel Savings Projection:

To understand the potential annual savings:

Annual Fuel Savings = Fuel Savings per Day×Number of Days in a Year

Annual Fuel Savings= $25.48/day × 365days/year = $9,298.2/year

So:

With a 10% improvement in fuel efficiency, you can potentially save $9,298.2 per year. 

And this is calculated for ONE VEHICLE.

If you have a fleet of vehicles, that can amount to a serious savings for your operational costs.