Fuel prices in New Zealand can be unpredictable, and for small to medium businesses (SMEs), petrol price hikes mean higher fleet running costs. But rising petrol prices don’t just impact business fleets; they impact everything from delivery expenses to daily commutes, making it harder for SMEs to keep costs down.
This article shares simple, practical tips for New Zealand SMEs to manage rising petrol costs – from using fuel cards and planning routes better to leveraging tech tools – to help boost savings and strengthen your bottom line.
Key topics covered
- How NZ fuel prices work
- Strategies for SMEs to save on fuel
- Alternative fuel options
- Future trends in fuel
Understanding How Fuel Prices Work in New Zealand
The New Zealand fuel market is controlled by a few key things. One major factor is global oil prices. When oil prices go up or down internationally, New Zealand petrol prices usually follow suit. This means that global supply and demand, as well as international events, have a direct impact on what you pay at the pump.
Taxes and levies are also a big part of the cost. A portion of every litre you pay includes taxes that go toward funding roads and other national infrastructure. While these taxes support essential projects, they do push up the overall price.
Finally, local competition can make a difference in price. Fuel costs tend to be lower in areas with more stations competing for customers, while prices are often higher in regions with fewer options.
Understanding these factors can help SMEs see why fuel prices fluctuate—and where to look for potential savings.
How Rising Fuel Costs Affect SMEs
For small and medium businesses, rising fuel costs can drive up expenses in both direct and indirect ways.
Directly, higher fuel prices mean increased costs for businesses with delivery services, sales visits, or fleets. Every extra dollar spent on petrol cuts into profits, so finding ways to lower fuel use becomes crucial to keeping operating expenses manageable.
Indirectly, fuel price hikes can impact supply chain costs. When suppliers pay more for fuel, they may raise their prices, which trickles down to your business. Additionally, higher commuting costs for employees can affect hiring and retention, especially if staff are struggling with increased travel expenses.
Being aware of these direct and indirect impacts helps SMEs plan more effectively and put strategies in place to keep costs down.
4 Simple Strategies for Managing Fuel Expenses
1. Fuel Cards
Joining a fuel card program is one of the most effective ways to manage fuel expenses and save on petrol. Many NZ fuel card programs offer discounts at the pump and often include extra perks that make managing fuel costs simpler. Here’s how fuel cards can help:
- Get discounts on fuel at specific stations, saving money each time you fill up.
- Set spending limits to keep fuel expenses within budget.
- Track fuel use easily, so you can see where you’re spending and where to save.
2. Better Route Planning with Fleet Tracking
Planning smart, more efficient driving routes is another practical way to save fuel. By mapping out trips to avoid high-traffic areas or unnecessary detours, you can cut down on mileage. Fleet tracking software makes this even easier, giving you real-time info on where your vehicles are and helping you adjust routes as needed. This means less fuel use and more efficient trips, which adds up to savings over time.
Some popular fleet management software brands in NZ include
- BONNET For Fleet
- Navman Teletrac
- EROAD
- Fleetpin
- Fleetio
- Verizon Connect
3. Encourage Fuel-Smart Driving
Small changes in driving habits can make a big difference. Simple things like easing into acceleration, braking gently, and cutting down on idling all help use less fuel. Training your drivers on these habits is an easy win, leading to savings that add up every month.
There are even programs you can sign your employees up for that teach them how to drive more safely and efficiently, like the Safe and Fuel Efficient Driving (SAFED NZ) Programme for truck and bus drivers, or HW Richardson Group SAFED Training for everyday drivers.
4. Use Price Comparison Apps
Free apps like Gaspy make it easy to find the cheapest fuel nearby. Your drivers can check the app before filling up to compare prices at nearby stations, helping them choose the most affordable option, which will eventually cut costs over time.
Consider Alternative Fuel Options for SMEs
Electric and Hybrid Cars
Electric vehicles (EVs) and hybrids are becoming more affordable and offer lower running costs than traditional petrol vehicles. They also need less maintenance, which can save you money on repairs. For SMEs that do a lot of city driving, switching to an EV can lead to big savings over time.
Read more: Is 2025 the year to switch your fleet to EVs?
Biofuels and Other Alternatives
Biofuels are another option worth considering. Made from organic materials, biofuels are a cleaner alternative to petrol. They aren’t widely available in NZ yet, but their popularity is growing. For businesses wanting to reduce their environmental impact and rely less on traditional fuel, biofuels could be a good choice in the near future.
Future Trends in the NZ Fuel Market
Fuel prices are always changing, and while no one can predict exactly where they’ll go, keeping an eye on trends can help SMEs prepare for what’s ahead.
What’s Happening with Fuel Prices?
Experts expect fuel prices to keep fluctuating, influenced by global events and shifts in supply and demand. This could mean occasional price hikes or dips, often without much warning. For SMEs, staying aware of these trends is key to planning ahead. By keeping a flexible fuel budget, businesses can handle sudden price jumps a bit more smoothly.
New Fuel Technologies on the Horizon
New fuel options, like hydrogen fuel and advanced electric vehicles (EVs), are also becoming more practical. These technologies are evolving quickly, with many companies investing in cleaner, alternative fuels. As they become more available and affordable, hydrogen and next-gen EVs could offer SMEs fresh ways to save on fuel and reduce environmental impact.
By keeping an eye on these developments, SMEs can be ready to adapt to a changing fuel market and explore new cost-saving options as they emerge.
Stay Ahead with Smart Fuel Solutions
While we can’t predict where fuel prices will go, businesses can still get ahead of rising costs with the right tools. Fuel cards, for example, offer instant discounts and help track spending, so you can manage fuel expenses more effectively.
Using route planning, fuel-saving apps, and adopting good driving habits are also simple ways to reduce costs, no matter what the market is doing.
By putting these strategies in place, SMEs can stay prepared, keep costs down, and make every litre count – even in an unpredictable fuel market.
Start Saving on Fuel Today
Want to start saving on fuel? Explore fuel card options tailored for SMEs and find a card that fits your business needs. Comparing NZ fuel cards is easy with comparefuelcards.co.nz. Check your eligibility now and start maximising your fuel savings today!
Nov 06, 2024
Compare Fuel Cards NZ Team
Last updated Nov 06, 2024