Which fuel type is right for my fleet?

Corparison’s guide to selecting the right fuel type for your fleet

Trying to choose which fuel type your next fleet vehicles should have?

There’s never been such a wide selection of fuel types in automotive history. With a need to develop more sustainable and cost-effective vehicles, both for the public and for fleets, there has been an increase in engine type and powertrains over the last few years.

The drive for low-emission vehicles has resulted in multiple changes, not just in the push for electric driving, but also in the traditional petrol and diesel cars themselves to make them as economical and efficient as they can be.

But all these choices can result in a headache when it comes to picking the right fuel type for your fleet.

There’s no right or wrong answer, unfortunately. It’s all going to come down to your company’s individual needs and budget, and even your driver’s preferences. But with a comprehensive fleet strategy in place, you can make an informed decision.

Which fuel type should I choose for my fleet?

Before you make any other decisions about your fleet, you need to know who is going to be driving the vehicle (or vehicles) in question, where they’re going to be driving, what the vehicle is going to be used for, and when it’ll be used.

While a sales rep covering significant mileage each day might need an economical diesel, someone who only makes short journeys through town might fare better in an electric vehicle, where they can make the most of the zero-emissions driving and help your business to hit its sustainability goals.

If your drivers are often in Ultra-Low Emissions Zones, you might also be better off looking at solely hybrids or electric vehicles, so you’re not paying out so much on the congestion charge.

Having the data to hand will ultimately make the decision about which fuel type is right for your fleet much easier, and will help to narrow down the choices – even if you end up with a fleet that has a combination of fuels to fit your varying business needs.

Total Cost of Ownership (TCO)

Total Cost of Ownership, or whole life cost, is one of the most important factors when it comes to selecting which fuel type, or types, are going to be right for your fleet. 

Knowing how much a vehicle is going to cost your business across the entirety of its lifespan, rather than just the initial upfront investment, will help you decide which fuel type is going to be the most cost-effective. A vehicle that seems cheap upfront can end up costing a lot more than a vehicle that’s a little bit more expensive on the surface.

But with Corparison’s whole life cost calculator doing the hard work for you, all you have to do is select which vehicle you’re interested in, and you’ll get an extensive breakdown of how much a vehicle is going to cost you. 

If you’re debating between a few different vehicles and fuel types, it’s an excellent way to get an instant idea of which vehicle will fit your business needs and budget. 

Petrol

Petrol cars are generally the cheapest to buy outright and to fill up at the petrol station, but depending on how they’re being driven and where they’re being driven, don’t always work out as the cheapest when you factor in its whole life cost. 

They also don’t tend to be the most fuel-efficient vehicle, when compared to the alternatives, and maintenance costs can be higher.

But since CO2 emissions have been used to set Benefit in Kind tax rates – and many fleets made the switch to diesel – there have been advancements in the technology used in petrol cars to make them more attractive to buyers, including smaller capacity engines, fewer cylinders and the addition of turbochargers.

If you need an everyday run-around that’s not clocking up the mileage, and your fleet isn’t in a position to make the switch to electric driving, then a petrol engine fleet vehicle could work for you.

Diesel

Though diesels are renowned for their fuel economy, their popularity has waned over the past few years as more businesses look to improve their green credentials and hit sustainability goals.

But though diesel cars have come under fire for their environmental performance, thanks to their higher levels of nitrogen oxide (NOx) emissions, manufacturers have developed technology to help mitigate this, including the use of AdBlue.

Diesel remains one of the top choices for fleet vehicles, especially those cars that are often travelling miles up and down the country on the motorways. In this case, fuel economy is going to be top of your list – and you still can’t beat the diesel for fuel economy.

Hybrid

When it comes to hybrids, you have a bit of a choice: either Hybrid Electric Vehicles (HEVs), or Plug-In Hybrid Electric Vehicles (PHEVs).

Which one to choose is going to come down to how comfortable your business is with making a step towards electric, and whether you or your drivers have the infrastructure in place to be able to plug in and charge a car. 

Though PHEVs still have a petrol engine as back-up – it’ll kick in once the electric battery is depleted – their extended electric range means that they need plugging in like a fully electric car would. And with PHEVs tending to get around 30-50 miles per charge, if your drivers are just making short journeys around town and recharging every evening, they might get away with driving solely on the electric engine.

This could significantly lower your fuel costs, because recharging a car still works out cheaper than filling it at the petrol station and will go a long way to help improve your business’ green credentials. 

Mild hybrids are a better choice if you don’t have capacity to recharge your vehicles. There’s no plugging in required here – simply driving the car will recharge the battery, and the electric boost will help to improve fuel economy and cut your costs.

Hybrids do tend to cost more upfront, but it’s worth working out the whole life cost and seeing how much you could save.

Electric

Electric vehicles are becoming more common on our roads, and more businesses are making the switch to running an electric fleet.

It’s easy to see why: not only is it a more sustainable way to run a fleet, but the whole life cost of driving an EV can be a lot less than a traditional combustion engine vehicle.

Not only is it cheaper to charge a car, but with less moving parts to go wrong, maintenance and servicing costs can be a lot lower. And there are ways to bring your fuel costs down even further, by looking into additional infrastructure like solar panels that can power your workplace electric charge points.

Charging your fleet with the power of the sun? It’s a win/win for your budget and your sustainability goals.

And with EV technology improving every year, there are plenty of cars out there with claimed ranges in the 200–300-mile bracket that aren’t going to break the bank. It makes the prospect of switching to EV a lot less daunting for your drivers if they know the car can go a long way before needing recharging, but it is worth bearing in mind for your drivers that are really clocking up the miles.

There’s nothing to stop them making the switch, but the logistics of where they might need to stop and charge on their journey will need some working out.

But for short trips and urban driving, electric vehicles are the perfect choice for your fleet.

Hydrogen Fuel Cell

A bit of a more left-field option – and one that isn’t readily available – hydrogen fuel cell might actually be the ‘greenest’ way to drive.

Unfortunately, although the technology does work and several manufacturers have produced hydrogen-powered cars, there is a serious lack of infrastructure to support this type of vehicle. It’ll only work for your fleet if you happen to be within a short drive of a refuelling station.

However, it is one to keep an eye on.

If the technology proves scalable in a similar way to electric vehicles, then we could eventually see a boom in hydrogen-powered cars. With the production of hydrogen coming from methane gas, it is one of the greener methods of production, and it has a similar cost to petrol and diesel.

Refuelling also only takes minutes, and a full tank would bag you over 300 miles before needing to stop.

Essentially, your best bet for selecting the right fuel for your fleet is going to be deciding which are the most important factors for your business (even if these vary between vehicles), and narrowing down your choices based on these.

Fuel economy and costs, sustainability, upfront costs and maintenance will all have an impact on how much the vehicle ends up costing across its lifespan, but there’s no point putting your drivers in unsuitable vehicles just because they work out the cheapest.

At the end of the day, your fleet vehicles need to work for your fleet.

But with Corparison’s help, you can rest easy knowing that your drivers are in the best vehicles for them, at the best price for you.