MANAGING RISING FUEL COSTS

The most successful organizations are managing rising fuel costs by combining operational discipline and technology, before considering a procurement strategy or a gradual energy transition.

Organizations that treat fuel as a controllable system, rather than an unavoidable expense, are consistently outperforming their peers—especially in transportation, construction, and waste management.

90-Day Fuel Reduction Strategy

 Objective:

Reduce total fuel spend 8–15% within 90 days without major capital investment, while protecting margins against future fuel volatility.

• Fuel volatility is structural, not temporary

• Most fleets carry 10–20% avoidable fuel waste

• Fast wins come from discipline, visibility, and behavior—not new equipment

90-Day Strategy Overview

· Days 1–30: Stop waste and stabilize operations Days 31–60: Optimize assets, routes, and behaviors

· Days 61–90: Lock in savings and protect margins

Phase 1: Days 1–30 — Stabilize & Stop the Bleeding

• Assign single fuel owner (Ops + Finance)

• Lock baseline metrics (gallons, idle %, fuel per unit)

• Enforce idle and fueling policies Target: 3–7% reduction

Phase 2: Days 31–60 — Optimize What You Control

• Focus on bottom 20% of assets and operators

• Right-size equipment to work performed

• Reduce deadhead miles, idle hours, and cold starts Target: Additional 3–6% reduction

Phase 3: Days 61–90 — Lock in Savings & Protect Margins

• Implement indexed fuel recovery models

• Align operator incentives to fuel KPIs

• Standardize fuel assumptions in pricing and bids

Segment-Specific Priority Levers

· Waste: Route optimization, idle/PTO control, RNG or electric pilots

· Construction: Idle reduction, right-sizing, job-level costing

· Transportation: Driver behavior, lane optimization, fuel procurement

Expected 90-Day Results

· Waste: 10–18% reduction

· Construction: 8–15% reduction

· Transportation: 6–12% reduction

Q U I C K L I N K S