South African fleets missing the link

Effective fleet management is the key to getting the most out of each vehicle in a fleet. When it comes to the cost of fuel there is a definite disconnect between the fleet management company and their customer. Since the fleet management company is seldom responsible for the fuel cost, they have no incentive to find savings. Fleet management companies do spend a lot of money on fuel theft prevention because this is a cost most often charged to their client. By effectively ignoring the cheapest vehicle fuel currently available fleet management companies are doing their customers a big disservice.

On 21 April 2020 Brent crude dropped to $ 19.01 a barrel, the lowest it has been this millennium. This dramatic drop was reflected in the R 12.22 per litre at the pump for 95 octane petrol in May 2020. South Africa has not seen a price this low since September 2016. June 2020 has already seen an increase to R 13.40 per litre, we are sure that it will not be long before we see the R 16.16 per litre of January 2020. All through these turbulent and troubling times natural gas has held its price of R 9.85 per litre equivalent. In fact, the price of natural gas has only been adjusted twice in the last 5 years and is now trading at the same price as 5 years ago.

Fleet owners are entitled to a rebate related to the volume their vehicles consume monthly, this can be as high as R 0.80 per litre equivalent.

Since fleet management companies are not benefiting from the savings at the pump or from the rebate it is up to the client employing the fleet management company to insist that natural gas be a part of the fuel mix offered by the fleet management company.

InterToll, a company managing the toll plaza’s around Gauteng, make use of Nissan NP200’s to patrol the stretches of roads between plaza’s. They have a Nissan NP200 that travelled 85 000km between 24 January 2020 and 24 May 2020. This vehicle operated over 95% of the time on CNG, ran 24 hours a day and achieved an operating cost of less than R 0.60 per km compared to its petrol driven companion which cost more than R 1.25 per km to operate. These operating figures include services and maintenance. These figures are available on request.

Converting your fleet to run on CNG will decrease your operating costs. This is especially significant for businesses that have a high demand for fuel such as the manufacturing and logistics sectors.

It is important to mention that Natural Gas is a clean-burning fuel. It produces less carbon when running, this in-turn extends the life of the engine’s lubricating oil and decreases the frequency of servicing required. In conventionally fuelled vehicles, engine oil degrades as a result of carbon produced during the combustion process.

NGV Gas fuels a substantial number of fleet vehicles, public transport busses, taxis, JMPD and municipal vehicles. NGV Gas has installed public filling stations across Gauteng and has a programme to open four new stations before the end of 2020. Stations in Kwa-Zulu Natal will be opening in 2021. To learn more about CNG and the benefits visit: https://bit.ly/2YQVQ3y.

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