Fuel for Thought

Pump-Less

How much does fuel economy matter? Let’s look at some numbers (don’t worry, I will do the math for you).

This week, the national average price for diesel fuel in the U.S. is $3.60. Although you may find fuel in your area for less or it could even be a lot more, this is the national average from the EIA website ( Gasoline and Diesel Fuel Update - U.S. Energy Information Administration (EIA) ) , so this is the number I will use for these basic calculations. Also, I will be using an annual mileage of 100,000 miles traveled. You may drive more or less miles, but for this purpose, 100,000 miles works well as an average.

If your truck is getting:

8 MPG (100,000 / 8 = 12,500 gallons) (12,500 X $3.60 = $45,000)

9 MPG (100,000 / 9 = 11,111 gallons) (11,111 X $3.60 = $40,000)

10 MPG (100,000 / 10 = 10,000 gallons) (10,000 X $3.60 = $36,000)

11 MPG (100,000 / 11 =  9,090 gallons) (9,090 X $3.60 = $32,724)

12 MPG (100,000 / 12 = 8,333 gallons) (8,333 X $3.60 = $29,999)

13 MPG (100,000 / 13 = 7,692 gallons) (7,692 X $3.60 = $27,691)

While many drivers don’t think it means too much to increase their fuel mileage, the savings are significant. 

If your current truck is only getting 8 MPG and you upgrade to a more efficient truck that gets 10 MPG, you will potentially keep $9,000 per year, each year to offset the cost of buying a new or newer, more efficient truck. You could also possibly do some upgrades to your current truck to make it more fuel efficient. Another way to increase fuel mileage to adjust your own driving habits. Whatever you do to increase your fuel efficiency, any gain will net more money in your pocket. You have the power to increase your net revenue even without increasing your gross revenue. The less you spend, the more you keep.

Whether you are eco conscious or not, buying less diesel fuel to run your equipment means more revenue in your bank. If you are eco conscious, you can take comfort in the fact that you are burning less fossil fuel.

My goal every year is to keep more of the revenue I earn. Running as efficiently as possible helps to keep costs down across the board. 

When you are looking at fuel economy, look at the big picture. Looking at today, this week or even this month can give you misleading info. You must take into account the panoramic view. Winter diesel generally yields less MPG. The height of summer can also yield less MPG. Extreme temperatures affect fuel mileage, and winter fuel blends burn quicker. A yearly or even quarterly view of your fuel economy will produce more accurate results. 

Be safe. Be productive, Be efficient.

You can make a lot of mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you're too inefficient. 

- Sam Walton

See you down the road,

Greg