Drive Your Fuel Loss Down, with DriveFuel
Fuel prices are certainly a hot topic these days with recent fuel price increases. Recent predictions estimate that fuel prices could reach R20 per liter before we see 2019. These increases add enormous pressure to our struggling economy. There is not much that can be done to curb the increases, however, transport operators can be proactive in controlling their losses. Fuel loss is very difficult to quantify because although most operators agree that they suspect they are losing fuel, it is difficult to determine how much fuel is being lost, and where and when the loss is taking place. Fuel spend is one of the largest expenses for transporters and can range between 38 and 44% of operating costs. Efficient fuel usage is impacted by the following
- Vehicle Maintenance
- Road conditions
- Weather conditions
- Driving style
- Side Filling
The last three points are the incidents that are difficult to manage.
It is estimated that fraud equates to between 5% and 15% of these costs. According to the DOE, commercial diesel usage for 2016 was 9 billion liters, if we take a middle point of 8% fraud on 9 billion liters, and add a value based on the average 2016 fuel price, a staggering R7.4 billion was “lost during 2016. Any increase in fuel, especially when it is large, and ongoing increases, also increases the occurrence of fuel theft. It is an easy form of supplementing one’s income to cope with the inevitable inflationary increases that also come with fuel increases. The risk of being caught becomes more tolerable when compared the perceived reward. The truth is, more efficient diesel usage not only adds to the transporters bottom line, it also can contribute to lowering transport costs, and therefore keep inflation in check.
Diesel theft almost always involves the driver, and the networks that he/she has established at various filling stations and side of road “vendors”. Typically fuel theft could be committed through fuel card fraud, unauthorized mileage, siphoning, or short filling. Un-calibrated fuel pumps may also contribute to unexplained losses. Fuel theft is a fact, and there are very few transporters that would dispute this. Identifying perpetrators, and proving theft is the real challenge. Effective and intelligent solutions are required to curb these activities. Whilst traditional precautionary measures have helped, and certainly are not considered useless, they are still not fool proof. Anti-siphon devices can be circumnavigated by finding other access points, cameras can be smudged, and so on. Ultimately, any loss directly impacts on profit margins. Can transporters afford to not seriously consider additional, proven solutions to combat fuel loss?
DriveRisk, market leaders in driver science, who specialize in identifying and reducing risk in the transport industry has a proven solution called DriveFuel to combat fuel losses. The DriveFuel program has had significant successes with our clients who have identified theft, and managed to dismiss the responsible employees, and as a result seen improved fuel usage, and consumption figures. The unit is a standalone, not reliant on additional systems which enables operators to fit a DriveFuel unit without having to change tracking providers. The intelligent online software is easy to use, and allows users to manage their fuel by exception, as opposed to providing reams of information that consume valuable time. DriveFuel will provide you with the following solutions which will identify fuel loss:
- Identify loss from tanks through siphoning
- Identify short fills-get what you pay for.
- Identify filling areas of concern
- Identify where losses take place on interactive maps
- Identify fuel consumption
- Realtime alerts on fill-ups and losses
- Control fuel over spend.