OTS advice to combat fuel costs
Equipment provider Oil Tank Supplies (OTS) has issued guidance to fleets on how advanced fuel management systems can help to mitigate against soaring fuel prices – the impact of which can be severe where margins or budgets are slim.
“Only a few months or years ago it would have been reasonable to assume that very few businesses were using fuel management systems at all, and those that were, were primarily using basic data gathering and reporting systems designed to monitor fuel supplies at truckstops and other fuel depots,” said OTS.
“These systems have existed for decades and have mainly been employed by companies wishing to ensure that their depots were always optimally stocked, balancing cashflow with the need for sufficient fuel to operate.
“There were of course additional fuel security benefits to this kind of system – any dramatic drops in fuel stocks would alert managers who could quickly investigate leaks and theft – but traditional fuel management systems were not built with fuel security at their heart.”
However, the last few years have changed the game, OTS points out, identifying a number of factors that have affected fuel security in the UK – not least the Covid pandemic, and sterling’s position against the dollar resulting in market volatility. In addition, the changes to the law surrounding rebated red diesel has meant that businesses are now storing and dispensing white diesel instead of gasoil, and falling prey to increased fuel theft and misuse with any ullage coming at a greater cost.
“With fuel prices already on the rise, Russia’s invasion of Ukraine in February of this year has pushed fuel prices even higher,” the firm added.
“Although the UK imports just six per cent of its crude oil from Russia, it is still affected when global prices increase. Russia is one of the world’s largest oil exporters, but is facing international sanctions as a result of its actions in Ukraine…
“This means demand for oil from other producers has increased, leading to higher prices…
“As a result of these changes, businesses in the UK that want to regain control of their costs need to get serious about how they are managing their fuel,” said OTS.
“Gone are the days where fuel could be stored and monitored with a light touch. The businesses that are thriving in today’s market are the ones that are able to stay on top of the data, using it to make informed business decisions, and are in complete control of the fuel that they dispense.
“The fuel management systems that we are installing in 2022 fulfil both of those functions.”
Fuel management systems will show historical and real-time data enabling future predictions based on historical peaks and troughs in fuel demand, says OTS, comparing year-on-year.
“This enables fuel managers to shop for the best prices and purchase at the right time by producing data on the price businesses are paying for fuel and comparing with the average refinery gate price,” said the firm.
“This kind of system will also automatically generate real time-fuelling information, highlighting vehicles and people using excessive amounts of fuel, allowing managers to quickly delve into the data behind these issues, and make business decisions about fleet maintenance and driver behaviour, whether for HGV, PSV and/or LCV fleets.
“Our fuel management systems also provide automated alerts to fuel managers in the case of significant changes to stock levels, enabling companies to prioritise environmental response (facilitating maintenance in the case spills) and security (in the case of theft from the tank).”
The company reported an uptake in the last 12 months in the number of businesses requiring advanced fuel management systems that rely on telematics, or vehicle tracking systems.
“These decisions are frequently motivated by a desire to tighten up fuel security and prevent fuel misuse and fuel theft from the nozzle,” said OTS.
“This kind of fuel management system gives complete control over fuel dispensing back to the business, preventing the filling of unauthorised vehicles and secondary containers.
“To use an example, we have recently designed and installed an advanced fuel storage and management system for a large utilities company in the UK with a large LCV fleet.
“The new refuelling facility was designed with an enhanced automated fuel management system at its heart which removes the need for manual data entry, and thus potential for human error, and allows the business to track all vehicle or plant refuelling, combining depot tank measurements with fuel card usage.
“With access to this kind of data, as well as the automated restriction of fuelling to authorised vehicles and plant, businesses are able to regain control of their fuel costs, eliminating or reducing all forms of wastage and loss from theft and misuse to wastage linked to vehicle maintenance issues, and everything in between.”
More information about fuel security, fuel management systems and telematics are available via the website, or by contacting OTS.
