Lysanda

News releases

21.12.2009 British companies “can save £3.3bn on road fuel costs”

Lysanda, the provider of advanced technology for vehicle fuel savings, today released details of its analysis of the UK commercial road fleet market. This suggests that UK companies can save up to £3.34bn a year by reducing the fuel consumption of their vans and lorries. Better monitoring of the performance of each vehicle could reduce fuel consumption by up to 20%, while also cutting harmful CO2 emissions.

There are around 4.45m commercial vehicles currently on UK roads (source: SMMT, Motor Industry Facts 2009). Assuming that an average vehicle does 18,000 miles per year, using 750 gallons of fuel at a price of £5 per gallon, annual fuel costs are £3,750 per year. Using efficient vehicle monitoring, fuel consumption can be cut by up to 20%, or £750 per vehicle per year.

Lysanda’s analysis follows the UK Government’s launch of the Van Best Practice programme in November. This aims to help van users cut running costs, improve safety and reduce their environmental impact. As part of this programme, the Department for Transport estimated that an overall improvement in fuel efficiency of 5% would save around £250m per year, reducing carbon emissions by three quarters of a million tonnes. However, Lysanda’s analysis suggests that companies can realistically target much larger savings.

Using Lysanda’s Eco-Log software, every vehicle can be monitored, providing an accurate measurement tool for fuel usage and carbon emissions. Based on its work with a range of commercial partners in the UK and abroad, Lysanda estimates that by using accurate, up to date data to get the worst drivers to be more like the best, it is possible for firms to save up to 20% of their annual fuel bills. This creates significant financial savings and also reduces harmful emissions.

 Lysanda Chief Executive Alex Willard said:

“Better fleet monitoring offers an easy win for many British businesses. Massive savings can be made by using available technology to assist companies in reducing fuel and other vehicle costs. £3.34bn is a massive potential saving, especially when you consider it does not involve cutting jobs or closing factories.”

“Fleet efficiency is fundamental to company profitability. Fuel costs are typically 20%-25% of fleet running costs and fuel wastage also suggests higher maintenance costs. Volatile oil prices have put additional focus on fuel efficiency and costs, which have direct impact on profit. Promoting smarter driving is an easy way for companies to save money and reduce emissions.”