Fleets are considering new fuel purchasing strategies
Key takeaways
- A recent FleetOwner survey found fleets are considering new strategies to soften fuel costs.
- Only about one-third of fleets purchase fuel in bulk, but more are now considering the approach.
- Respondent comments show concern about long-term impacts of high fuel prices.
With oil and diesel prices squeezed to painful highs over the last month, many fleet executives are considering new strategies to manage costs.
In our most recent survey, a total of 23 FleetOwner readers shared what their fleets are doing about fuel prices. The takeaway? Many fleets that previously didn’t have bulk or contract fuel purchase agreements are considering changes.
Fuel surcharges
Surcharges are a common for-hire practice to dampen the volatility of fuel prices. But not everyone reading FleetOwner engages in the practice: 14 respondents (61%) say they that they receive fuel surcharges, while nine respondents (39%) say they do not receive surcharges; four of those (17%) are in private fleets.
Fuel through bulk, contracts
Bulk and contract fuel purchasing, meanwhile, are less common among fleets—but many fleets are reconsidering their purchasing options.
Only six respondents (32%) report purchasing fuel in bulk, while 13 (68%) said that they do not purchase in bulk.
Fuel purchasing contracts, though, seem more prevalent: Nine respondents (47%) say their fleet has a fuel purchasing contract, and 10 (53%) say their fleet does not.
Second-thinking fuel acquisition strategies
With the recent pain of diesel prices, respondent fleets are reconsidering those fuel purchasing strategies.
Among 14 respondents who either did not purchase fuel in bulk or purchased without a contract, half reported that their fleet is thinking of buying fuel in bulk or through a contract. Four (29%) of those were considering both bulk and contract, while three (14%) were considering only contract, and one (7%) was considering only bulk.
From readers themselves: Prices are tough, concerning
The greatest insights come from the respondents’ own comments. The overarching theme of comments: These high fuel prices are threatening some fleets’ survival.
“It’s critical for our business that fuel prices do not stay this high for an extended amount of time."
“Very concerned and stressed on the long-term impact if this doesn’t get resolved."
“It is making things tight if we are hoping to survive this round of increased cost.”
“It’s hard on cash flow, but we will get through. Maybe it will put some of the weak carriers out and help capacity.”
Other comments highlighted what they’re doing (or continuing to do) to manage fuel costs:
“Our fuel surcharge program is tied to the West Coast cost of fuel index published by the EIA. We announced the next week cost of fuel percentage on Tuesday, for the coming week.”
“Added emphasis to use our yard fuel and buy road fuel in our network. Better route planning.”
“Just increasing fuel surcharge.”
“Not much you can do. We do have a surcharge.
Some respondents, meanwhile, suggested diesel prices were still no problem:
"Unnecessary, we have plenty of reserves at this time and plenty in the ground here in the U.S."
About the Author
Jeremy Wolfe
Editor
Editor Jeremy Wolfe joined the FleetOwner team in February 2024. He graduated from the University of Wisconsin-Stevens Point with majors in English and Philosophy. He previously served as Editor for Endeavor Business Media's Water Group publications.