Telematics for Reducing Fuel Costs in Fleets
Explore how telematics can significantly reduce fuel costs for fleet operators by optimising routes, monitoring driver behaviour, and enhancing vehicle maintenance.
Fuel costs are one of the largest expenses for fleet operators, making up around 30% of vehicle operating costs. Telematics systems help fleet managers cut these costs by tracking vehicle data like location, speed, idling, and driver behaviour. This data is used to reduce fuel waste, improve routes, and monitor vehicle health.
Key ways telematics reduces fuel costs:
- Idling reduction: Alerts and reports highlight unnecessary engine idling, which can burn up to 0.5 gallons of fuel per hour.
- Route optimisation: Real-time traffic updates and efficient planning save fuel and time.
- Driver behaviour monitoring: Identifying habits like harsh braking or speeding can lower fuel consumption by up to 40%.
- Maintenance scheduling: Preventive maintenance ensures engines run efficiently, avoiding fuel waste.
For UK fleets, adopting telematics can result in fuel savings of 10-15% annually, with tools available for as little as £7.99 per month per vehicle.
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Main Causes of High Fuel Costs in Fleet Operations
Before telematics can help improve fuel efficiency, fleet managers in the UK need to pinpoint the key factors driving high fuel expenses. Several challenges often combine to create inefficiencies that significantly impact fuel budgets.
How Driver Behaviour Affects Fuel Use
The way drivers handle vehicles plays a major role in fuel consumption. Aggressive driving - marked by rapid acceleration, harsh braking, and excessive speeding - can lead to a sharp rise in fuel usage. In fact, this kind of driving can increase fuel consumption by as much as 40%. Research shows that it lowers fuel economy by 15%-30% on motorways and 10%-40% in stop-and-go traffic. Even driving just 5 mph over 50 mph adds roughly £0.14 per gallon to fuel costs.
Smooth and gradual acceleration helps the engine operate more efficiently, while abrupt changes force it to work harder, burning more fuel. Similarly, speeding increases air resistance, requiring the engine to exert extra effort. These habits not only inflate fuel costs but also lead to faster wear and tear on vehicles, driving up maintenance expenses.
But driving style isn’t the only issue - other inefficiencies can also push fuel costs higher.
Vehicle Idling and Fuel Waste
Excessive idling is another common but often overlooked source of wasted fuel. Many drivers leave engines running during breaks, while waiting for customers, or during loading and unloading. Even when idle, engines still consume fuel without providing any value. This is especially problematic in urban areas, where vehicles often idle in traffic or while making deliveries. Over time, prolonged idling adds up, wasting fuel, wearing out engines, and increasing emissions.
In the UK, many local councils enforce anti-idling rules, and breaching these regulations can result in fines. Since idling often becomes a habitual, unconscious behaviour, tackling it can be tricky without systems in place to measure and provide feedback.
Poor Route Planning and Extra Miles
Inefficient routing is a silent drain on profits that impacts multiple aspects of fleet operations. Drivers who take suboptimal routes use more fuel and spend extra time on the road, reducing the number of jobs they can complete in a day. Poorly planned routes often fail to account for traffic, roadworks, weather conditions, or customer schedules, forcing drivers to take longer paths or speed to make up for delays.
Even an additional 10% in unnecessary miles across a fleet can add up to thousands of pounds in extra fuel costs annually. Beyond the financial impact, this also reduces productivity and increases wear on vehicles.
Recognising these inefficiencies is the first step toward using telematics to bring fuel costs under control.
Ways Telematics Reduces Fuel Costs
Telematics has become a game-changer for fleet operations, offering practical ways to tackle inefficiencies and cut down on fuel expenses.
Tracking and Reducing Vehicle Idling
Telematics systems keep a close eye on idling by combining GPS data with ignition status to pinpoint when and where vehicles are left running unnecessarily. This transforms what used to be hidden fuel waste into actionable insights.
Excessive idling is a major drain on fuel. For instance, idling can burn up to 0.5 gallons of fuel per hour, which can add up to significant costs for UK fleets. A single long-haul truck might consume around 1,500 gallons of diesel annually just from idling. Research suggests that discretionary idling could account for as much as 6% of total fuel consumption.
Telematics platforms provide detailed reports on idling patterns, helping fleet managers distinguish between necessary idling (like during loading or mandatory breaks) and wasteful practices. Real-time alerts notify managers when a vehicle exceeds preset idling limits.
"The programme gives you a breakdown of fuel costs per vehicle, and it also breaks down your idle time... It gave us the chance to even go in on the live map and see where those events occurred." - Stephanie Vassallo, office administrator at Bevill Vineyard Management
Armed with this data, fleet managers can coach drivers and implement anti-idling policies. Fleets using telematics paired with AI dashcams have reported a 15% reduction in fuel costs, while even basic telematics systems achieve a 7.5% reduction. Beyond reducing idle time, telematics also transforms route planning.
Route Planning with GPS Technology
Telematics simplifies route planning by analysing traffic, road conditions, and delivery schedules to create the most efficient routes for each journey. It also allows for real-time adjustments, helping drivers avoid delays caused by congestion or roadworks, which can otherwise lead to higher fuel usage. By focusing on shorter routes and real-time traffic updates, fleets can minimise both idle time and overall fuel consumption.
This approach can reduce fuel consumption by up to 15%. Avoiding stop-and-go traffic is especially important, as aggressive driving in such conditions can lower fuel efficiency by as much as 40%.
Driver Performance Monitoring and Feedback
Telematics doesn’t stop at idling and routing; it also monitors driver behaviour to further improve fuel efficiency. It tracks habits like speeding, harsh braking, rapid acceleration, and unnecessary idling. Fleet managers can use this data to create driver scorecards and identify areas for improvement. Real-time alerts give immediate feedback to correct inefficient driving behaviours.
Even small changes in driving habits can lead to noticeable savings across a fleet. Many systems also include reward programmes to encourage fuel-efficient driving, reinforcing positive behaviours over time. Regular reviews of telematics data ensure these improvements are maintained as part of an ongoing process.
Vehicle Maintenance Scheduling for Better Efficiency
Keeping vehicles in top condition is another way telematics helps reduce fuel costs. By monitoring engine health and performance metrics, telematics enables proactive maintenance scheduling based on the actual condition of the vehicle, rather than arbitrary timelines. Poor maintenance can force engines to work harder, burning more fuel. With telematics, fleet managers can address issues early, ensuring engines run efficiently while also reducing unexpected downtime.
UK fleet managers can take advantage of these strategies with GRS Fleet Telematics, which offers real-time tracking, driver monitoring, and fleet optimisation starting at just £7.99 per month.
Setting Up Telematics in Your Fleet
Getting telematics up and running in your fleet is about much more than just installing hardware. It’s about making sense of the data, training your team, and choosing the right provider to help cut down on fuel expenses. These steps are key to turning raw numbers into actionable strategies for improving fuel efficiency.
Reading Data Reports for Cost Savings
Telematics generates a wealth of data, but the trick is knowing where to focus. Pay attention to metrics that directly impact fuel costs, such as fuel consumption, idle times, maintenance expenses, route efficiency, and driver performance. These areas give you the clearest view of where money might be slipping through the cracks.
Driver behaviour is one of the quickest ways to identify savings. For example, driving just 5 mph over 60 mph can reduce fuel efficiency by 0.7 mpg. On the flip side, maintaining speeds between 55–65 mph can save a fleet covering 100,000+ miles each year as much as £7,700 in fuel costs.
Instead of focusing on one-off incidents, look for patterns in your data. For instance, tracking where and when vehicles refuel can highlight trends like potential fuel fraud or inefficient routing. Cross-referencing GPS data with fuel station locations can help verify whether transactions are legitimate.
A great example of this in action is Hill Country Construction. In 2025, they integrated their fuel management system with telematics across their 180-vehicle fleet. The results? A 13% drop in fuel consumption, a 10% reduction in mileage thanks to optimised routes, an 80% cut in maintenance costs through predictive scheduling, and £650,000 saved annually across all expenses. They even used the data to allocate costs more accurately to specific projects, helping them price bids better and identify their most profitable work.
Once you’ve got these insights, the next step is making sure your team knows how to act on them.
Staff Training on Telematics Systems
To get the most out of telematics, your team needs proper training. Start by showing drivers how the system benefits them, like reducing paperwork, improving safety, and offering potential incentives for good performance. Gaining their support is essential - without it, even the best systems can fall flat.
Eco-driving training is a great place to begin. Teach drivers techniques like using cruise control, checking tyre pressure, reducing idling, and optimising routes with GPS. Use telematics data to provide personalised feedback, showing each driver where they can improve.
Another effective tool is scorecards that rate fuel efficiency and safety. Pair these with reward systems to encourage drivers to adopt fuel-saving habits. Positive reinforcement tends to work better than penalties. Also, train drivers on preventive maintenance so they can handle routine checks. This helps catch small issues before they turn into major problems that waste fuel.
Selecting a Telematics Provider
Once your team is ready, it’s time to make sure the telematics provider you choose aligns with your goals. Define clear objectives - whether that’s cutting fuel consumption by 10% or reducing empty miles by 15%. When evaluating providers, think about how well their tools integrate with your existing systems, the ease of use, data accuracy, ongoing support, and whether their solutions can scale with your business.
For fleets in the UK, GRS Fleet Telematics offers a targeted solution for maximising fuel efficiency. Starting at £7.99 per month per vehicle, their platform includes real-time tracking, driver monitoring, and route optimisation tools to tackle the main culprits of fuel waste. They offer three hardware options: Essential (£35) for basic tracking, Enhanced (£79) with dual-tracker backup, and Ultimate (£99) with immobilisation features. Each plan includes software, SIM/data, platform access, and a dedicated account manager.
GRS Fleet Telematics stands out with features like speed monitoring, geofencing alerts, eco-driving analytics, and route planning tools to help avoid traffic. With 24/7 support and scalable solutions for fleets of any size, it’s a solid choice for cutting fuel costs. Companies using similar telematics systems often see fuel savings of 10–15%. Additionally, fleets switching from manual tracking to real-time monitoring have reported benefits like a 25% drop in accidents and a 40% reduction in insurance claims within the first year.
Conclusion
Telematics offers a practical way to tackle rising fuel costs, targeting three major areas of inefficiency: driver habits, route planning, and vehicle maintenance. By addressing these, it delivers measurable results that directly impact your fleet's bottom line.
For example, aggressive driving can significantly lower fuel efficiency, while something as simple as maintaining correct tyre pressure can prevent up to a 4% increase in fuel consumption when tyres are under-inflated by just 8 psi. Across an entire fleet, these small inefficiencies can quickly add up.
"By connecting your fleet to a centralised system, telematics provides real-time data about your vehicles - tracking their location, monitoring driver behaviour, and even keeping tabs on fuel consumption or maintenance needs."
- Eric Schell, Telematics Products and Analytics Manager, Element Fleet Management
This technology gives you live insights into your fleet's operations, helping to identify excessive idling, improve route efficiency, and schedule maintenance before small issues escalate into expensive repairs. By turning raw data into actionable strategies, telematics empowers fleet managers to make smarter decisions. Whether it's monitoring driving habits or optimising routes, each step contributes to cutting fuel costs.
For UK fleets looking to take charge of these expenses, GRS Fleet Telematics offers a solution packed with tools like speed monitoring, geofencing alerts, eco-driving analytics, and route planning. These features target the key areas where fuel waste occurs, helping fleets operate more efficiently.
"Telematics isn't just a helpful tool - it's essential for keeping your fleet efficient, competitive and safe."
Fleets often see fuel savings of 10-15% within the first year. Considering that fuel is one of the largest expenses in fleet management, these savings can amount to thousands of pounds annually, even for smaller operations.
The real question isn’t whether telematics can save you money - it’s how soon you can start seeing those savings. With round-the-clock support, scalable solutions, and a proven track record, telematics provides immediate improvements in efficiency and cost management.
FAQs
How can telematics improve driver behaviour to help lower fuel costs?
Telematics offers fleet managers a way to keep a close eye on crucial aspects of driver behaviour, including acceleration, braking, cornering, and speed. By spotting patterns of inefficient or risky driving, managers can deliver customised feedback and coaching to help drivers adopt safer and more fuel-efficient habits.
Beyond monitoring, telematics systems also help streamline routes by evaluating traffic trends and road conditions. This ensures drivers follow the most efficient paths, cutting down on fuel usage, saving money, and promoting a greener approach to fleet operations.
How do you set up a telematics system for your fleet, and can it be tailored to specific requirements?
Setting up a telematics system for your fleet generally involves three main steps: installing tracking devices in your vehicles, configuring the system to capture the data that matters most, and integrating it with your existing fleet management tools.
The system is flexible, allowing you to customise it to suit your operations. You can adjust data collection settings, enable features such as route optimisation and driver behaviour monitoring, and scale the setup to match the size of your fleet. With careful planning and clear communication, you can streamline the process and create a solution tailored to your specific requirements.
How can telematics help fleet managers cut fuel costs and improve efficiency?
Telematics systems offer a wealth of insights by tracking details like vehicle location, speed, idling durations, and driver behaviour. Fleet managers can use this data to pinpoint inefficiencies - things like excessive idling or unnecessary detours - and make adjustments to improve routes and encourage more fuel-efficient driving practices.
For instance, cutting down on idling time and ensuring vehicles stick to the most efficient routes can lead to noticeable fuel savings. On top of that, keeping an eye on driving habits, such as harsh acceleration or abrupt braking, enables managers to provide targeted training. This kind of coaching helps drivers adopt smoother, more economical driving styles. The result? Lower fuel costs and reduced wear and tear on vehicles, which translates into significant savings over time.