Fuel Cost Estimates: Understanding and Managing Fleet Fuel Spending
Fuel is one of the largest variable expenses for many commercial fleets. While fleet managers may already have access to fuel consumption, fuel economy and vehicle activity data, understanding what that consumption means in actual dollars can make it easier to evaluate operating costs and communicate fleet performance.
For many businesses, fuel spending changes with vehicle utilization, driving behaviour, operating conditions and market prices. Without a clear connection between fuel usage and cost, it can be difficult to understand where money is being spent or identify opportunities to reduce unnecessary fuel consumption.
MyGeotab has introduced Fuel Cost Estimates to provide fleet managers with a directional view of fuel spending directly within the Fuel and Energy Overview. The feature combines fuel-use data with regional market fuel prices to estimate the cost of fuel consumed by a fleet.
Why Fuel Cost Visibility Matters
Fuel consumption data can tell fleet managers how much fuel their vehicles are using, but consumption alone does not always provide the financial context needed for decision-making.
For example, a fleet may notice that fuel consumption has increased from one month to the next. Without cost information, it can be difficult to understand the financial significance of that change or communicate it to business leaders.
Fuel cost estimates help connect operational data with financial outcomes. Instead of looking only at litres or gallons consumed, fleet managers can also view an estimated dollar value associated with fuel usage.
This can support conversations around fuel efficiency, vehicle utilization, driver behaviour, idling and other operating factors that influence fleet costs.
What Are Fuel Cost Estimates?
Fuel Cost Estimates is a metric available in the MyGeotab Fuel and Energy Overview.
The feature estimates fuel costs for gasoline and diesel vehicles, as well as plug-in hybrid electric vehicles when they are operating using their combustion engine. The estimate is based on the vehicle’s fuel type and primary operating location, using regional or country-level market fuel prices.
Unlike a fuel card statement or accounting record, the feature is not intended to show the exact amount a fleet paid at the pump. Instead, it provides a directional estimate that gives fuel consumption a financial context.
This can be particularly useful for fleets that have detailed vehicle data but do not have fuel-spend information available directly within their telematics platform.
How MyGeotab Calculates Fuel Cost Estimates
Fuel Cost Estimates combines vehicle fuel-use data with market fuel pricing information.
According to Geotab, fuel prices are sourced weekly from Global Petrol Prices and matched to each vehicle’s fuel type and primary operating location. The resulting estimates are displayed in the user’s local currency, with USD used when currency conversion is unavailable.
When a fleet manager selects the Fuel Cost Estimate card in the Fuel and Energy Overview, MyGeotab displays a monthly trend chart covering the current and previous year.
Managers can hover over individual months to see the estimated total cost and the market fuel-price rate used for that month. This makes it possible to compare fuel-cost trends over time rather than looking at a single figure in isolation.
What Vehicles Are Included?
The Fuel Cost Estimate metric is designed around internal combustion and plug-in hybrid vehicles.
It applies to:
- Gasoline vehicles
- Diesel vehicles
- Plug-in hybrid electric vehicles when operating on their combustion engine
Battery electric vehicles, fuel cell electric vehicles, biodiesel, CNG, ethanol and LPG vehicles are excluded from the Fuel Cost Estimate.
Accurate vehicle classification is also important when using the Fuel and Energy Overview. MyGeotab uses powertrain classifications such as Internal Combustion Engine, Battery Electric Vehicle and Plug-in Hybrid Electric Vehicle to determine which metrics apply to each vehicle.
If a vehicle’s fuel type or powertrain group is unassigned, gasoline pricing may be applied by default for the fuel-cost estimate.
Fuel Cost Estimates and the Fuel and Energy Overview
Fuel Cost Estimates is part of MyGeotab’s broader Fuel and Energy Overview, which brings several fleet energy metrics together in one location.
The overview can provide visibility into:
- Fuel economy
- Fuel used
- Fuel cost estimates
- Energy usage
- Tailpipe emissions
- Emissions intensity
- Tailpipe emissions avoided through EV use
The available metrics change depending on the vehicles and powertrains selected. Fleet managers can filter information by groups, powertrain type and date range to focus on the part of the fleet they want to analyze.
This broader view can help organizations examine fuel costs alongside the operational factors contributing to them.
Identify Opportunities to Reduce Fuel Costs
Fuel cost estimates are most useful when they are connected to the operational data behind them.
For example, the Fuel and Energy Overview includes an Idling Reduction section that helps fleet managers quantify fuel used while vehicles are idling. MyGeotab separates preventable idling events between 10 and 60 minutes from other idling activity, such as short engine warm-ups or extended power-take-off activity.
This information can help fleets investigate whether unnecessary idling is contributing to fuel consumption.
Managers can also review fuel economy and fuel-use trends across different groups within the organization. Comparing vehicles, departments or operating groups can help identify areas where fuel consumption is higher than expected and may warrant further investigation.
The goal is not simply to monitor how much fuel a fleet uses, but to understand the operational factors that may be contributing to fuel costs.
Fuel Cost Estimates Are Directional, Not Fuel Card Transactions
One important distinction is that a Fuel Cost Estimate is not the same as a record of what a company actually paid for fuel.
The estimates use regional market fuel prices rather than individual fuel-card transactions. As a result, the figures are directional and may not match a fuel card statement exactly.
Actual fuel purchases can differ because of factors such as the specific station used, negotiated fuel pricing, taxes, discounts or other transaction-level considerations.
For this reason, the feature is best viewed as a way to understand fuel-cost trends and provide financial context alongside fleet operating data, rather than as a replacement for accounting or fuel-card records.
How Fuel Data Can Support Fleet Decisions
When fuel consumption, fuel economy and estimated costs are viewed together, fleet managers can gain a clearer picture of vehicle operating performance.
For example, a fleet may use this information to investigate:
Increasing fuel consumption
A rise in fuel use can prompt managers to review vehicle utilization, trip patterns, idling and other operational factors.
Higher fuel costs over time
A change in estimated fuel costs may reflect changes in fuel consumption, market fuel prices or both. Looking at the monthly trend can help managers understand how those factors are affecting the overall picture.
Differences between fleet groups
Fuel and energy metrics can be filtered by fleet groups, allowing managers to investigate whether particular divisions, operating areas or vehicle groups account for a disproportionate share of fuel usage.
Opportunities to reduce idling
When idling represents a significant portion of fuel consumption, fleets can use the available data to identify where additional driver coaching, policy changes or operational adjustments may be appropriate.
Long-term fleet strategy
The Fuel and Energy Overview also provides information related to transitioning light-duty vehicles to electric powertrains. Fleets evaluating electrification can use the available data to consider fuel consumption, energy usage and potential emissions reductions together.
Improve Fleet Visibility With GPS Tracking Canada
GPS Tracking Canada provides GPS tracking, telematics and fleet management solutions that help businesses monitor vehicle activity, fuel usage and other aspects of fleet operations.
MyGeotab’s Fuel and Energy Overview brings fuel consumption, fuel economy, fuel cost estimates, idling analysis and other energy-related information into one platform. For organizations looking to better understand how vehicle activity affects operating costs, this data can provide useful financial and operational context.
Contact us to learn more about fleet tracking and fuel-management solutions for your business.
Frequently Asked Questions
What factors can affect a fleet's fuel costs?
Fuel costs can be influenced by fuel prices, vehicle utilization, distance driven, fuel economy, idling, driving conditions and vehicle type. Reviewing these factors together can help fleet managers understand why fuel spending changes over time.
How can fleet managers monitor fuel consumption?
Fleet managers can use telematics data to monitor fuel used, fuel economy and distance travelled across individual vehicles or groups. MyGeotab’s Fuel and Energy Overview brings these metrics together and allows data to be filtered by group, powertrain type and date range.
What is fuel economy and why does it matter?
Fuel economy measures how efficiently a vehicle uses fuel over a given distance. Comparing fuel economy across vehicles or fleet groups can help identify higher-consuming assets and areas where operating efficiency may need further investigation.
How does idling affect fuel consumption?
A vehicle can continue using fuel while stationary with the engine running. MyGeotab provides idling data that can help fleets quantify fuel used during idling and identify groups with a higher proportion of fuel consumption associated with idling.
How can fleets identify unnecessary idling?
The Fuel and Energy Overview separates idling events lasting between 10 and 60 minutes into a preventable category, while other idling can include activities such as short engine warm-ups or extended power-take-off operation. This can help fleets focus their attention on potentially preventable fuel use.
How are market fuel prices selected for each vehicle?
MyGeotab uses weekly fuel-price data from Global Petrol Prices. For vehicles operating in Canada or the United States, the system uses the fuel price for the province or state where the vehicle spends the most time. For vehicles outside those countries, country-level pricing is used based on the vehicle’s primary operating location.
Can fuel costs vary between vehicles in the same fleet?
Yes. Vehicles may operate in different locations, use different fuel types or have different fuel-consumption rates. These differences can affect the estimated cost associated with each vehicle’s fuel use.
Are plug-in hybrid vehicles included?
Plug-in hybrid electric vehicles are included when they are operating on their combustion engine. Depending on the selected powertrain filters, MyGeotab can also display both fuel and electric energy metrics for PHEVs.
How are battery electric vehicles handled?
Battery electric vehicles are not included in the gasoline and diesel fuel-cost calculation. MyGeotab instead provides separate energy metrics such as energy economy, energy used and tailpipe emissions avoided for electric vehicles.
Can fleet managers compare fuel performance between groups?
Yes. The Fuel and Energy Overview can be filtered by MyGeotab groups, allowing managers to compare fuel and energy performance across different parts of a fleet. This can help highlight groups that may warrant further analysis.
Why might fuel data be missing or appear inaccurate?
Missing or unexpected results can occur when data is still being processed, when a group has no active assets or when vehicles have been assigned to the wrong powertrain group. Reviewing vehicle classifications and allowing time for monthly data processing can help resolve some discrepancies.
Why is accurate vehicle classification important?
MyGeotab uses powertrain classifications such as Internal Combustion Engine, Battery Electric Vehicle and Plug-in Hybrid Electric Vehicle to determine which metrics apply to a vehicle. An incorrect or missing classification can affect which data appears in the Fuel and Energy Overview.
Can the fuel figures be compared with fuel-card records?
They can be used for comparison, but they should not be expected to match exactly. The market-based cost calculation uses regional or country-level fuel prices rather than individual fuel-card transactions, so actual purchase prices and discounts can produce different results.
Why might MyGeotab data differ from a fuel report?
The Fuel and Energy Overview and Fuel and EV Energy Usage report use the same underlying data, but differences can occur because of processing timing, archived-vehicle settings and how trip timing is used to attribute fuel data.
How often is new fuel and energy data added?
The Fuel and Energy Overview is populated monthly. Information for the previous month is typically available within the first few days of the following month.
Can fuel data help with fleet budgeting?
Fuel and consumption trends can provide useful context when reviewing operating expenses and planning future fleet costs. Because market-based figures are estimates rather than transaction records, they are better suited to trend analysis and operational planning than to replacing accounting records.
How can fuel data help fleet managers find inefficient vehicles?
Managers can compare fuel economy, fuel usage and distance across vehicles to identify assets that consistently consume more fuel than comparable vehicles. Those vehicles can then be investigated for factors such as utilization, idling, operating conditions or maintenance needs.
Can telematics help reduce fuel waste?
Yes. Fuel and energy data can help fleets identify patterns associated with higher consumption, including excessive idling and lower fuel efficiency. Managers can use these insights to investigate operational changes, driver coaching opportunities and other ways to reduce unnecessary fuel use.
Can fuel data support fleet electrification decisions?
Yes. MyGeotab’s Fuel and Energy Overview includes information that can help fleets evaluate potential transitions to electric vehicles, including energy usage, emissions and potential light-duty vehicle replacements.
Can fuel and energy data be exported from MyGeotab?
The Fuel and Energy Overview itself does not provide a direct export option. However, key information such as fuel and EV energy usage and fuel economy can be obtained through the Fuel and EV Energy Usage Report.