SHOP OPERATIONS
Making the case for
on-site fuel management
30 Fleet Maintenance | May 2018
n-site fueling can help a fl eet gain control of its two
biggest expenses: fuel and labor. Fleets just need to
have a plan that facilitates proper implementation
and ongoing management.
“Our research shows that fl eets oft en sink 25
to 30 cents per gallon in lost wages when drivers
fi ll up at gas stations,” says Jeremy Whiddon,
vice president of business development at Atlas
Oil, a national fuel distributor based in Taylor,
Michigan. “When fi lling up in their own yards, on
the other hand, drivers have a tendency to waste
a lot less time — especially if there are security
cameras on the premises.”
On-site fueling can also help fl eets save money
on fuel itself. First of all, fuel is bought on the open
market from any number of suppliers.
“In the commodity world of fuel, pricing can get
highly competitive,” Whiddon says.
Secondly, a fl eet can enter into a fi xed forward
contract where pricing is set for a certain amount
of fuel over a specifi c period of time. Th is allows the
fl eet manager to better predict and manage costs.
Of course, a fi xed forward contract could also
backfi re.
“Storing fuel with market volatility can be risky,”
says Gus Pesaturo, senior vice president at nationwide
fuel supplier Diesel Direct. “Without hedging
the product, you open yourself to gambling on
market conditions.”
Even if a fl eet does end up locking in what
proves to be a great price, there are other potential
pitfalls when bringing fuel on site.
“You have the liability of having stored fuel,”
Pesaturo points out. “You still have drivers spending
time fueling their trucks. If there’s a lot of congestion
in your yard, this lost driver time can add up.”
Th is is why Pesaturo is a proponent of truck-totruck
fueling, a service off ered by some companies
such as Diesel Direct.
“You can have one of our fueling trucks come to
O The right
equipment,
training, processes
and fuel-quality
control can
help to boost
effi ciency and
drive down costs.
By Gregg Wartgow,
Contributing Editor
FUELS