According to recent stats, the prices of gas in the US are soaring. Increased demand and recent political decisions from Washington are creating inflation and attributing to this issue. In some states, prices of gas have gone up by more than 40 percent. You may be wondering how can you save on gas costs?
Unfortunately for small businesses, this is creating a huge increase in their utility bills and expenses. Some small businesses are finding it hard to fuel their cars.
However, that doesn’t mean giving up on your business. With the right strategies, you can save on energy bills and run your business profitability. Here are practical strategies small businesses can use and save on gas costs.
This is an obvious way your business can save on gas costs. But reducing the number of trips you make can save costs on business gas expenses.
Try to cluster deliveries to avoid traveling every day or making similar trips. You may also want to consider attaching routine errands to some of your trips. If possible, use public means when attending meetings or hold them online instead.
This can significantly lower your fuel costs.
Use Mobile Applications to Save on Gas Costs
Today, there really is a mobile application for everything. Some apps like GasBuddy allow you to find the cheapest gas rates near you. These apps are typically designed to show you the gas prices at nearest gas stations and even show the prices of different fuel types.
All you have to do is download one of these and start saving money at the pump!
Gas Rewards Programs
Another way to save on gas costs is by using rewards programs.
Most warehouse clubs (Sam’s Club, BJ’s, Costco, etc.), credit card companies, as well as supermarkets offer gas reward programs.
Sign up for the best reward program you can find near you and use it to pay for your gas. This way, every time you buy groceries on your business card you can save on gas.
You may be tempted to use your personal rewards to fill up your work truck or fleet. This is something you may want to avoid. At least with your business any fuel costs can be counted as one of your tax deductions.
Minimize Shipping Expenses
Shipping costs have significantly risen nowadays for multiple reasons. So, take time to seriously evaluate your shipping practices.
Do you have to ship everything and deliver them?
If so, then choose the smallest containers and consolidate your shipments whenever possible.
Ensure Company Cars are in Top Shape
Sometimes business owners tend to neglect vehicle maintenance for their business fleet. You should make sure that your cars and trucks are in good shape to save on gas costs.
There are even some small things you can do to save on gas costs. One is to always keep the tires inflated to their recommended amount. Driving on deflated tires will decrease gas mileage.
Also be sure to get a tune-up whenever necessary or an oil change. In some cases, an older vehicle with mechanical issues consumes more gas than a well-maintained, newer car.
It’s also imperative to note that driving at a slower speed can maximize your vehicles MPG and minimize your gas expenses. So, sticking to the speed limit won’t just ensure your safety but it will also go a long way in saving you money.
Consider Switching to Hybrid, Electric Cars
Investing in hybrid or electric vehicles for your business may be a great way to save on gas cost. However many times these vehicles are more expensive then their gas powered counter parts.
That being said, you may be eligible for a tax credit if you buy an electric car. So be sure to conduct your due diligence.
Due to the events of that last year and a half, buying a car at this time can be a challenge. If you are looking for a new or used car for you business, be sure to look into everything you need to know about buying a car in 2021.
Carry Lighter Loads
The heavier the items you’re carrying, the more gas you consume. Keep this in mind when you are planning deliveries. At the same time, consolidating your trips also makes since. If you consolidate too many shipments at once you may be eating up any cost savings from the reduced number of trips.
One tip is to make sure you don’t have excess materials or unnecessary tools in your business vehicles. Although it may not seem like it, all additional weight in your car can reduce your fuel economy which will not help you save on gas costs.
Ways Your Business Can Save On Gas Costs – Summary
There are many things to consider when you are trying to save on gas costs for your business. Be sure to follow these tips and you can save your hard earned money at the pump!