How to calculate and reduce fuel consumption

Reducing fuel consumption is a top priority for any fleet manager or business owner who operates with commercial vehicles. It’s also a smart strategy for SMEs looking to cut costs, improve efficiency and boost sustainability.

For small-to-medium businesses, fuel consumption can make up a large chunk of their operating costs. By focusing on areas like driver behaviour, idling, eco-driving and route optimisation — and by using the right fleet technology — you can manage those costs, improve performance and give your business an edge.

Let’s dive into some key initiatives that you can run to improve your fuel efficiency: 

1. Use technology and data intelligence

Fuel efficiency strategies become much easier, faster and reliable when backed by technology. GPS fleet tracking, telematics and data analytics give you real-time insights into fuel consumption, driver habits, idling, maintenance status and routes. 

Make sure your system allows you to:

• View fuel use per vehicle and per driver.
• Get alerts when behaviours or usage breach defined norms.
• Report monthly on fuel trends, driver performance and main cost drivers.
• Use dashboards that deliver insights you can take action on.

By combining smart technology with efficient operations, your SME can gain control, reduce costs, and maintain its competitive edge.

Download our eBook 5 strategies to cut fuel consumption for your fleet.

2. Improve driver behaviour

How your drivers accelerate, brake and handle their vehicle greatly impacts fuel use. According to research, “aggressive driving such as harsh braking or rapid acceleration can increase fuel consumption by up to 37% or more”.

To reduce the likelihood of these behaviours, you should encourage your team to:

• Accelerate smoothly and shift up early.
• Avoid harsh braking by anticipating traffic and hazards.
• Maintain a steady speed where possible — (use cruise control on clear roads).

With the right telematics or fleet-management system, you can monitor these behaviours, provide coaching and recognise drivers who adopt fuel-efficient habits. Over time, this leads to safer driving, fewer costly incidents and better fuel economy.

3. Minimise engine idling

Idling is one of the most overlooked sources of wasted fuel. Vehicles burning fuel while stationary deliver no productive mileage yet still cost money. But if you take action “fleet operators can expect average fuel savings in the region of 1% to 5% when implementing anti-idling measures” (2)

Telematics data shows idling can inflate costs and emissions even when a vehicle isn’t moving. 

To reduce idle time:

• Set an idling threshold (e.g., if a vehicle is stationary with engine running for more than 1-2 minutes).
• Coach drivers to switch off the engine during long waits or breaks.
• Use fleet system alerts to highlight high-idling vehicles or routes.

• By actively managing idling, you save fuel, reduce wear & tear and support your environmental goals.

   

4. Embrace eco-driving

Eco-driving is all about smarter habits behind the wheel — and it pays. Techniques like “minimising engine idling, maintaining a steady speed, and avoiding sharp acceleration and braking can all help to reduce fuel consumption and CO2 emissions”. 

According to an eco-driving review, fleets saw significant fuel savings when such techniques were applied. Concretely, “you can achieve up to a 20% improvement in fuel efficiency through efficient driving.

Key tactics include:

• Use the highest gear possible without labouring the engine.
• Anticipate stops and traffic to enable coasting rather than braking hard.
• Avoid cold-engine high RPM starts - minimise extra fuel use in the first few kilometres.

• When you embed eco-driving into your fleet culture, you get better fuel efficiency, reduced emissions and a more professional driving image.

   

5. Optimise routes and scheduling

Mileage is money. Every extra kilometre driven unnecessarily or every minute spent stuck in traffic adds fuel cost, driver-hour cost and vehicle wear. Fleet tracking plus routing tools can help you identify inefficient journeys and optimise your schedule. 

Best practices:

• Plan trips to avoid heavy congestion or peak traffic when possible.
• Use real-time traffic, job locations and vehicle availability data to pick smart routes.
• Consolidate jobs or combine tasks to reduce empty runs or backtracking.

• When your fleet spends less time idle or travelling inefficiently, you’ll see savings, faster job completion and happier customers.

   

6. Maintain your vehicles proactively

A well-maintained vehicle is inherently more fuel-efficient. Neglected tyres, clogged filters or overdue services can all increase fuel consumption and risk breakdowns. Research confirms that proactive maintenance correlates strongly with lower fuel use and better total cost of ownership.

Tips for maintenance-driven fuel savings:

• Monitor vehicle health and schedule service before faults occur.
• Keep tyre pressures correct - under-inflated tyres increase fuel use.
• Replace engine filters, oil and other consumables on time.
• By doing this, your fleet runs smoother, consumes less fuel and avoids expensive downtime.

Download our eBook 5 strategies to cut fuel consumption for your fleet.

Improve your fuel efficiency

Fuel consumption doesn’t need to feel like a mystery expense. With focus on driver behaviour, idling, eco-driving, route optimisation and maintenance - all powered by data - you can cut fuel costs, protect your drivers and boost your business. For SMEs operating across Ireland and beyond, these strategies aren’t optional: they’re essential for staying lean, competitive and sustainable.

Start with one change today, track your results and scale your approach. With visible savings and performance improvements, you’ll uncover the power of smarter fleet management - and turn every kilometre into value.