Fuel prices have been a major driver of inflation in South Africa over the last two years, where petrol and diesel prices have risen by 22% and 41%, respectively. For sure, fuel is one of the biggest expenses for trucking companies in South Africa. As fuel management is part of INControl’s Logistics solution, we stand side-by-side with fleet managers, to help manage their fuel consumption and learn the latest fuel trends. We’ve done our research, and based on data insights gathered from PwC and the Central Energy Fund – South African motorists can expect some good news for 2024. Let’s take a look at the fuel predictions we’ve uncovered within current market circumstances, as well as how businesses can reduce fuel consumption.

The latest fuel insights  

– Fluctuations in the pricing of international oil and the performance of the rand are expected to stabilise in 2024, which will result in less volatility in petrol and diesel prices this year. 

– Brent oil is priced to decline from around $81.80/bbl to $79.50/bbl at the close of 2024. This suggests fuel prices should, on average, be lower in the first three months of 2024 compared to the current quarter of 2023.

– The petrol and diesel prices will level out in 2024Q1, and then slowly increase in the remaining quarters of the year – which is based on current expectations in the financial markets. That being said, the depreciation in the rand exchange rate during 2024 will be slightly faster than an anticipated decline in global oil prices.

– Despite the relaxation in prices, it is still concerning that petrol and diesel prices have doubled over the past seven years, which is unsustainable for motorists.

No matter the current petrol prices, the rates remain volatile, and therefore it’s always important to keep in the loop on the latest fuel consumption reduction trends. That’s why we bring you the 7 factors that have a positive impact on fleet fuel consumption and emissions, according to insights from PwC.

1. Load planning and optimisation 

It is essential to make the best use of available cargo space in trucks. Load-building software can be accurately used to consolidate and determine the maximum carrying capacity of the transport fleet. This makes sure that all available space is used, reducing the need for additional trips and resources. And so they are not overloaded, which could lead to higher fuel consumption. Trucks that are carrying more weight than their recommended capacity tend to consume more fuel.

2. Reduce travel duration

Route optimisation should be used to create planned deliveries within specified time windows, helping drivers take the shortest or fastest routes possible. Not only does this improve delivery speed but also contributes to overall time and cost savings.

3. Scheduling of logistics 

The cost of fuel and consumption depends on the time of day the route is taken. Driving at night — when roads are emptier compared to during the day — saves them fuel and reduces CO2 emissions by reducing idling, accelerating, and decelerating.

4. Cold chain management 

When cooling is needed to refrigerate cargo areas, more energy is consumed and fuel is needed. Fleet owners could consider other options to reduce diesel usage of cooling including solar- or nitrogen-based cooling systems, the use of strip curtains or box compartments to prevent loss of cool air, and off-the-shelf temperature monitoring equipment and software.

5. Driver monitoring and training 

Driver training focuses on cultivating fuel-efficient driving habits, such as smooth acceleration and braking. By encouraging drivers to adopt these habits, fuel consumption can be reduced. This also contributes to a more environmentally friendly and sustainable operation.

6. Electrified powertrains

Original Equipment Manufacturers (OEMs) have increasingly started investing in hybrid technology for commercial vehicles, incorporating electric motors into the overall drivetrain design for use at vehicle pull-off and low speeds. Some companies are even moving to electric-only commercial vehicles to completely abandon the need to fill up at fuel pumps.

7. Partnerships with fuel suppliers

Petrochemical companies are interested in investing in long-term relationships with large clients. They can provide these clients with resources that could make their fleets more fuel-efficient. For example, fuel suppliers can offer a range of products that could improve fuel efficiency, including lubricants, engine cleaners, custom fuel blends, and corrosion inhibitors, among others.

Save on fuel with INControl

Our Transport Management System gives you more visibility into your supply chain. And when you have more visibility, you can better coordinate and plan your operation. Being able to easily plan and optimise transportation routes to ultimately save on fuel, is one of the core benefits of our solution. By considering factors such as traffic conditions, road quality, and fuel efficiency, we aim to help businesses create more fuel-efficient transportation routes. Get in touch with INControl if you want to learn more about saving on fuel.