Fuel isn’t just another overhead — it’s often the second largest expense after wages. Every mile matters. Every drop counts.
When fuel prices rise, or routes aren’t planned properly, your profit margins shrink fast. Even small savings per mile add up to big savings over time, especially for high-volume or long-distance delivery operations.
So, reducing fuel costs is not just about saving money — it’s about running a smarter, more efficient delivery business.
1. Use Route Optimization Software
One of the easiest ways to reduce fuel costs is by using route optimization tools.
What is route optimization?
Route optimization software calculates the fastest, most fuel-efficient route for multiple deliveries. It considers:
- Traffic conditions
- Road restrictions
- Delivery time windows
- Driver breaks
- Real-time changes
Benefits:
- Fewer miles driven
- Less idle time in traffic
- Lower fuel usage
- Faster deliveries
Popular route planning tools:
- Circuit Route Planner
- Routific
- Onfleet
- Google Maps for Business
- Sygic Fleet
These tools often pay for themselves quickly with the fuel savings they generate.
2. Keep Vehicles Well-Maintained
Poorly maintained vehicles burn more fuel. Regular maintenance keeps your vans, bikes, or cars running efficiently.
Key maintenance tips:
- Check tyre pressure weekly – Under-inflated tyres increase fuel consumption.
- Change air filters regularly – Dirty filters reduce engine efficiency.
- Keep engines tuned – A well-tuned engine can save up to 4% in fuel.
- Use the right oil – Using the manufacturer-recommended oil reduces friction and boosts MPG.
Preventative maintenance doesn’t just reduce fuel costs — it also lowers the chance of breakdowns and expensive repairs.
3. Train Drivers on Fuel-Efficient Driving
Driver behaviour has a huge impact on fuel usage. Teaching your drivers to drive more efficiently can cut fuel use by 10–25%.
Fuel-efficient driving tips:
- Avoid rapid acceleration and hard braking
- Maintain a steady speed
- Use cruise control when safe
- Turn off the engine when idling more than 1 minute
- Avoid unnecessary revving or aggressive overtaking
Offer driver training or incentives:
- Introduce a fuel-saving bonus scheme
- Use telematics or GPS tracking to monitor driving behaviour
- Offer feedback and improvement tips regularly
Driving smart is one of the cheapest and most effective ways to reduce fuel costs in your delivery fleet.
4. Reduce Vehicle Weight and Drag
The heavier your vehicle, the more fuel it uses.
Reduce weight by:
- Removing unused tools, equipment, or packaging
- Avoiding overloading vehicles beyond capacity
- Using lighter materials for packaging or shelving
Reduce drag by:
- Removing roof racks when not needed
- Keeping windows closed at high speeds
- Using aerodynamic vehicle designs or add-ons if possible
Even small changes here can improve your MPG (miles per gallon) noticeably.
5. Choose Fuel-Efficient Vehicles
When it’s time to buy or lease new delivery vehicles, go for fuel-efficient models.
Tips:
- Look for vans with high MPG ratings
- Consider hybrids or electric vehicles (EVs) for urban deliveries
- Compare running costs, not just purchase prices
- Use government grants or tax breaks for low-emission vehicles
For small routes:
- Consider e-cargo bikes or mopeds – cheaper to run and great for cities.
Investing in fuel-efficient vehicles is a smart long-term move for any delivery business.
6. Monitor Fuel Consumption With Telematics
Telematics systems track vehicle data in real-time, including:
- Fuel usage
- Idle time
- Speed
- Braking habits
- Route efficiency
By analysing this data, you can identify:
- Drivers who need training
- Routes that cost more than they should
- Vehicles using more fuel than average
Some popular telematics solutions include:
- Geotab
- Samsara
- Verizon Connect
- Fleet Complete
Using telematics can help you cut unnecessary fuel usage and improve performance across the board.
7. Cut Down on Idling
Many drivers leave engines running while waiting — this can waste up to half a gallon of fuel per hour.
Tips to reduce idling:
- Use signs or stickers to remind drivers
- Program GPS alerts for long idle times
- Encourage engine shutdown during breaks or waiting periods
Less idling = lower fuel bills and better air quality.
8. Buy Fuel at the Right Time and Place
Fuel prices vary a lot depending on the location and time of day.
Save fuel costs by:
- Using apps like PetrolPrices, GasBuddy, or Waze to find cheaper fuel stations
- Filling up early in the week – prices often rise closer to weekends
- Negotiating fuel cards or bulk discounts from providers
Fuel cards can also give access to fleet-specific rates, and make expense tracking easier.
9. Consolidate Deliveries
More stops = more fuel used. Instead of doing many small deliveries, look to consolidate them into more efficient runs.
How?
- Group deliveries by location
- Set minimum order sizes for out-of-area drops
- Offer time slots that work for grouped routes
This helps you maximise each mile and reduce the number of trips.
10. Encourage Customers to Use Pickup Points
Offering delivery to local pickup points or smart lockers can reduce the need for home delivery miles.
For example:
- Partner with local shops or petrol stations
- Use secure lockers or drop-off zones
- Promote click-and-collect as a green delivery option
Fewer doorstep deliveries = fewer wasted miles = less fuel burned.
11. Use Digital Tools to Reduce Return Trips
Failed deliveries mean driving back again — more fuel, more costs.
Reduce this by:
- Sending delivery notifications and ETAs to customers
- Offering live tracking and real-time updates
- Providing flexible time slots or safe-drop options
The goal is first-time delivery success — the more of these you achieve, the less fuel you’ll waste.
12. Review and Improve Regularly
Reducing fuel costs isn’t a one-time task — it’s an ongoing process. Regularly review your data, routes, and driver habits.
Monthly or quarterly checks:
- Which routes use the most fuel?
- Which drivers are most/least efficient?
- Are your vehicles performing as expected?
Run reports, compare trends, and adjust your strategy. Even a 1–2% improvement each month can compound into serious savings.
Bonus Tip: Consider Alternative Fuels
As regulations change and fuel prices continue to rise, it’s worth exploring alternative fuels such as:
- Electric (EVs)
- Hydrogen
- LPG (liquefied petroleum gas)
- Biofuels
Electric vehicles, in particular, can cut fuel costs by up to 70% and reduce maintenance needs too.
EVs aren’t right for every route just yet — but for city deliveries, they’re becoming a smart option.
Conclusion: Every Drop Counts
Reducing fuel costs in your delivery business doesn’t require huge changes or massive investments. Start small, track everything, and focus on efficiency at every level — from vehicle maintenance and driver training to route planning and customer communication.
Here’s a quick recap of what you can do today:
- Use route optimization tools
- Keep vehicles in top shape
- Train drivers on efficient driving
- Cut idling and reduce weight
- Monitor performance with telematics
- Consolidate deliveries when possible
- Switch to fuel-efficient or electric vehicles over time
The delivery business is competitive — but by controlling fuel costs, you protect your margins and set your business up for long-term success.
