Fuel costs at the pump

The rising price of fuel is creating rising prices for all kinds of goods and services as businesses struggle to cover their costs. 

Parvathy Sree, Vice President of AmTrust Nonprofit Underwriting, stated, “Small businesses that use vehicles as part of their daily operations, such as construction, transportation, maintenance and deliveries, will be obviously hit the hardest. These industries may be the first to administer extra charges to offset rising gas prices and help maintain their profit levels. Additionally, some businesses may begin to limit their service and delivery areas, targeting smaller regions to help reduce their fuel costs.”

If your business relies on some sort of transportation to operate, check out these handy tips from AmTrust Financial, that may help your small business save on fuel costs.

  • Keep tires properly inflated
    The National Highway Traffic Safety Administration (NHTSA) says that keeping the tires on vehicles properly inflated can reduce fuel costs by up to 11 cents per gallon. Properly inflated tires also last longer and can extend their lives by 4,700 miles. 
  • Provide training to help drivers avoid aggressive driving
    Driving aggressively is not only dangerous, but it can increase fuel consumption. Make sure drivers are properly trained to reduce aggressive driving habits. These habits include braking too quickly, accelerating too rapidly, and turning corners too sharply. 
  • Combine multiple trips into one
    Fewer trips reduce fuel costs simply because drivers can be proactive and efficient, combining errands into a single trip instead of several throughout the day. One longer trip can reduce the amount of gas used by half, rather than many short outings where the engine must start and warm up every time. Plan trips in advance and cluster deliveries, tasks, errands and service calls into common regions to cut down on the number of trips taken. 
  • Maintain the speed limit
    AmTrust’s Matt Zender, SVP of Workers’ Compensation Strategy, says,  says, “According to studies backed by the department of energy, a vehicle is less efficient as speed increases. At 75 miles per hour, studies show that vehicles are 23% less efficient than at 55 mph. Driving at slower speeds is more efficient for the vehicle and safer for the operator.” Additionally, driving the speed limit is safer for all those sharing the road. 
  • Reduce the load
    Clean out cargo areas, trunks and backseats to lighten the vehicle’s total load. A heavier vehicle uses more fuel, so decreasing the overall weight will help improve fuel efficiency. Make sure vehicles are only carrying what is absolutely necessary to their destinations. 

West Center has tons of tips to share with you about how to make your small business more efficient! Just give us a call at 707-964-7571 or set up an appointment to speak with our advisors!

Fuel costs at the pump