No one loves seeing the numbers on gas station signs get bigger. Whether you’re a commuter or road-tripper, you’ll feel the effect of rising gas prices. For fleet managers, that effect can be even harder to take. Fuel makes up about 22% of the total cost of owning and operating a vehicle. That adds up quickly when you run a large fleet.
One element of gas prices is the gas tax. This tax is meant to fund the construction and maintenance of roads. As electric and hybrid vehicles become more popular, owners of traditional vehicles wonder if they’ll pay the price in increased gas taxes or poorer road conditions. Let’s discuss current news on EVs, gas taxes, and road care, and how it affects fleet managers.
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The Effect of EVs on Gas Prices Around the Country
Cities in South Florida are increasingly concerned about the effect of electric vehicles evading the gas tax. Floridians pay a fairly high gas tax in order to fund road care. The gas tax has always been considered an effective, necessary user fee. Roads require maintenance, so all of us who use them must help pay for them. But what if some drivers aren’t doing their part to pay for that care?
The more fuel-efficient a vehicle is, the less gas it uses, and therefore the less tax that driver ends up paying. For electric vehicles, no gas means no gas tax. As EVs have become more popular around the country, many states have seen the funding from gas taxes falling–affecting their ability to construct and maintain roads.
Some states have already started combatting this problem, but Florida isn’t one of them. Almost half the states charge a higher annual registration fee for EVs to help compensate for their unpaid gas tax. Six states have fees for charging the vehicle, essentially taxing the electricity instead of the gas. States like Florida that don’t have these additional fees in place are facing concerning deficits in funding. Many Floridians feel they will pay the price for their EV-owning neighbors: either road conditions will suffer, or their gas taxes will increase.
How Will the Gas Tax and Road Funding Affect Fleets?
Whether insufficient gas tax funding leads to increased fuel prices or decreased road maintenance, fleets in states like Florida will feel the blow. Fuel is one of a fleet’s largest expenses. When roads are poorly maintained, there are multiple long-term ramifications–compromised routes, vehicle damage, lower efficiency and output, and greater fuel consumption.
South Florida officials and spokesmen are calling for new legislation and solutions to ensure all drivers–whether their vehicle operates on gas or electricity–do their part to fund safe roads. The result of this debate may have significant consequences for fleet managers, particularly those that operate in Florida or across multiple states. So, what can fleet managers do to limit the effects of this problem?
Tips for Fleet Managers to Stay Ahead of Gas Prices
Efficiency and cost-savings are already essential for successful fleets. For many fleet managers, these efforts may become even more vital as the dilemma of electric vehicles and gas taxes unfolds. Fortunately, there are numerous ways to optimize your fleet and lower expenses, regardless of legislation and gas prices.
At Rebel Fleet, our goal is to offer tailored fleet fueling solutions and customer service that help you save valuable time and money. Let’s explore some of the things you can do to maximize your fleet’s efficiency and minimize expenses, and how we can help.
Prioritize Fuel Efficiency with Vehicle Maintenance and Driver Education
The most straightforward way to save on gas is to use less of it. That makes it crucial to keep your fleet as fuel-efficient as possible. There are two primary methods to improve the fuel efficiency of any vehicle: keeping it well-maintained and operating it correctly.
Preventative maintenance keeps a vehicle running efficiently so it uses less gas. This includes oil changes, replacing air filters, and keeping tires inflated and in good condition. When it comes to driving the vehicle efficiently, make sure your drivers are following these best practices:
- Don’t idle. Anytime the vehicle is stopped for more than a couple of minutes, it should be turned off.
- Brake and accelerate smoothly. Consistent, steady driving is the most fuel-efficient.
- Keep to moderate speeds. Driving at higher speeds burns more fuel.
GPS tracking and telematics are great tools for fleet managers to monitor driving behavior and find areas of improvement. You can spot problems like excessive idling or speeding and work with drivers toward optimization.
Optimize Routes and Fueling Locations
Optimizing your routes is always beneficial to maximize efficiency. Effective schedules and routes can avoid expenditures related to traffic, excess driving, and obstructions. Telematics software is invaluable in this optimization effort.
When gas prices are high or roads are poorly maintained, route planning becomes even more important. Look for routes that will be safest and most efficient for your drivers, and find fueling locations with lower prices.
How Fleet Fuel Cards Can Help You Save
Our fleet fuel cards have the customizability and flexibility to seamlessly integrate with your fleet’s needs. Fuel cards make it easier to track and control expenses. With over 60,000 locations to choose from, you can find the best fuel at the best prices. Our fleet fuel cards offer custom reporting, card controls, and 24-7 customer service to put you in the driver’s seat as a fleet manager. It’s also easy to integrate your fuel card with telematics software for the best analytics and optimization.
Learn More and Become a Rebel Today
You may not be able to control gas prices and road maintenance, but you can control your fleet’s efficiency and optimization to lower costs and maximize profits. Rebel Fleet is here to help you do that with tailored solutions and unfailing service.
Contact us today to learn more about our fleet fuel cards. Become a Rebel and start saving today, no matter where the road takes you.
