Clever budgeting, tools and techniques to help with rising fuel costs
Fluctuating fuel prices is something the whole world is dealing with right now. And when it comes to businesses and their budgets, it’s one of the biggest considerations, especially for those in the transportation industry.
The impact of rising fuel prices on business is clear to see, even when the prices go up by the smallest margins. It can create a ripple-effect across the company. That’s where clever budgeting becomes critical, along with having the latest figures. Our Station Finder can give you the most up-to-date figures, based on the last fuelGenie customer who filled up. So you can always plan ahead.
The impact of rising fuel prices on business – and how to adapt your budget
A myriad of factors contribute to the fluctuating price of fuel. Two major factors include the cost of crude oil and exchanges rates. When either of these fluctuate – which happens a lot – they have a huge knock-on effect.
Other factors include VAT, fuel duty, distribution costs and of course, global conflicts. If one or more of these fluctuate, the price of fuel follows.
This then leads to businesses having to deal with additional transport and distribution costs, resulting in stretched budgets. Some businesses may have to save money elsewhere, scaling back projects or increasing their own prices.
It’s an on-going issue and one that is difficult to solve. That’s where fuelGenie can help companies save and minimise the impact of rising fuel prices on business.
Budgeting techniques and things to consider
Businesses don’t have to be at the mercy of rising fuel prices. There are certain budgeting techniques available to help ease the pressure, which you can tailor to your company.
Predictive analytics (or historical analysis of past data) can help predict fuel expenses you might need in the future. It could be as simple as looking at seasonal dips and hikes, or analysing spikes after certain global events. Keeping an eye on crude oil and exchange rates (especially between the dollar and the pound) can also help with forecasting.
Another technique is scenario planning. By considering different situations that might arise, you can outline the pros and cons of different decisions and strategies without taking any real-world risks. This can help mitigate the impact of rising fuel prices on business if-and-when the scenarios happen. Being prepared for worst-case and best-case scenarios helps you act quickly, knowing you’ve thought-through your decision.
A third technique is adjustment allowance. Building a buffer into your budget can help with unexpected rises in fuel prices. So if all else fails you have something to fall back on. It could be as simple as putting aside a small amount each month that builds up over time.
Cost control measures and optimising the business
Saving doesn’t have to all be around clever budgeting. There are other ways to reduce costs elsewhere in the business. Optimising your drivers’ routes can help save fuel in the long run, finding the most efficient ways to travel.
Timing any maintenance of equipment and transport to be looked at in one go can also minimise things like labour costs.
You could look at talking directly to fuel suppliers to try and negotiate a locked-in price, protecting your company against fluctuations. Bulk-buying may also result in a discount – and having the fuel stored on-site may mean less travel for your drivers to refuel.
According to Harvard Business Review, one way to strike a deal with a supplier is “by serving as a gateway to new markets”. In other words, opening up a new opportunity for them, so that they’ll happily negotiate with you.
Staying up-to-date and keeping on-top
Once you have a plan in place, with various techniques to help you stay on top of fluctuating fuel prices, it’s important to keep your strategy up-to-date.
Reviewing your budget regularly will help with any big surprises. And looking out for new tools could help make the process easier, saving you time as well as money. Fuel price trackers can help you stay ahead, with fuelGenie’s Station Finder a great place to start.
Conclusion: get ahead of fluctuating fuel prices
Change is inevitable. Being prepared, flexible and pro-active is the best way forward. Take action now – gather your tools, find out how fuelGenie can help and plan how you would react in certain situations. So when the next spike inevitably happens, you already know exactly what you’re going to do.
