On Road

Fuel

The 'Fuel Contract' (Contract 366 - Motor Spirits & Petroleum Products) for the purchase of fuel from retail stations using fuel cards commenced on 01 July 2006.  The following links provide some useful information regarding the purchase of fuels under contract:

• Department of Premier and Cabinet Memorandum M2007-16
• Ethanol and Biofuels - E10 Petrol Station Locations
• NSW Procurement Contract for Fuel Guide

Fuel Consumption

Saving Money and The Planet

Fuel is one of the more notable expenses involved in running a vehicle fleet.

In fact next to the capital costs of the vehicle, fuel is generally the greatest single financial burden a fleet manager will need to control. Thankfully, with some planning and forethought, remarkable savings can be made in this area of your fleet with some great benefits for the environment also.

Why try to cut your fleets fuel usage?

The Cost

Your driving habits, the type of car you drive and the conditions under which you drive determine your car's fuel consumption and hence fuel costs.

By using the following calculation you can estimate your annual fuel costs:

Annual fuel costs ($) = fuel price ($/L) x fuel consumption (L/100 km) x annual distance travelled (km) ÷ 100

Assuming petrol costs at $1.10 per litre, for a car achieving 8 L/100 km and travelling 15 000 km, the annual fuel cost is estimated by:        

$1.10 x 8 L/100 km x 15 000 km ÷ 100 = $1320

You can estimate the lifetime cost of fuelling your car and the impact of small differences in fuel consumption. For example, if we compare a car achieving 8 L/100 km with one achieving 10 L/100 km, the annual fuel bill will be $1320 and $1650 respectively. Over the lifespan of the vehicle's lease, say 3 years, the cost for fuel will be:

Fuel Consumption    Fuel Cost

6 L/100 km               $ 2970
8 L/100 km               $ 3960
10 L/100 km             $ 4950
12 L/100 km             $ 5940            

As you can see the differences in fuel costs are large, and these would increase with any subsequent rises in the cost of petrol.

The Environment

Our lifestyle is producing more and more greenhouse gas emissions. Scientific research predicts that rising temperatures caused by increased levels of greenhouse gases will harm humans, plants and animals by changing weather patterns and raising sea levels.

Road transport in Australia is responsible for 65 million tonnes of greenhouse gas emissions or 14 per cent of Australia's overall greenhouse gas emissions. You can help reduce these emissions by choosing the most fuel efficient car to meet your needs and driving it in a fuel efficient manner.

Urban air pollution is the number one public environmental concern in Australia. Motor vehicles are a major contributor to air pollution in Australia, and as fleet managers we have a responsibility to make every effort to reduce the output of harmful greenhouse gases.