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Smart Ways to Drive Down
Trips to the Pump
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Whether your business operates a fleet of vehicles, or you just drive around town in your personal car, you are undoubtedly feeling pain at the pump. The nationwide average price for regular unleaded gas last week was $3.57, according to the American Automobile Association, compared with $2.87 a year ago. So in this period of economic uncertainty and high gas prices, it makes sense to put fuel conservation at the top of your cost-cutting list.
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Which States Pay the Most (and Least) for Gas?
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Highest Price Per Gallon |
Lowest Price Per Gallon |
| 1. California $3.88 |
1. New Jersey $3.39 |
| 2. Alaska $3.80 |
2. Wyoming $3.40 |
| 3. Hawaii $3.77 |
3. Arizona $3.41 |
| 4. Connecticut $3.73 |
4. Utah $3.41 |
| 5. Illinois $3.71 |
5. Missouri $3.42 |
| 6. New York $3.71 |
6. Oklahoma $3.44 |
| 7. Washington $3.68 |
7. South Carolina $3.44 |
| 8. Michigan $3.64 |
8. Minnesota $3.44 |
| 9. West Virginia $3.64 |
9. New Hampshire $3.46 |
| 10. D.C. $3.62 |
10. Tennessee $3.46 |
| 11. Oregon $3.62 |
11. Arkansas $3.47 |
| 12. Nevada $3.61 |
12. Texas $3.48 |
| 13. Florida $3.60 |
13. Louisiana $3.48 |
| 14. Wisconsin $3.60 |
14. Colorado $3.49 |
| 15. Maine $3.56 |
15. Mississippi $3.50 | --Source: AAA Daily Fuel Gauge Report for 4/25/08 |
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'08 Toyota Prius
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'08 Smart Fortwo
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'08 MINI Cooper
| What Are the Most Fuel Efficient Passenger Cars?
Many Americans were amused when the modern MINI Cooper was introduced here in 2002 by BMW. The small size of the cars and their often-whimsical paint jobs made them the source of stares on the highway.
But MINI Coopers seem spacious compared to the "Smart Fortwo" cars introduced this year. At just 8.8-feet long and 5.1-feet wide, Smart cars get about 36 miles-per-gallon in combined city and highway driving. Of course, these vehicles made by Mercedes-Benz aren't for everyone. They only seat two people and are currently sold at a limited number of dealerships nationwide.
However, even with their tiny size, Smart cars are not the most fuel efficient cars on the road in 2008. That distinction goes to a couple of hybrid vehicles, which may also provide a federal tax credit. Here are the best cars in terms of gas consumption, according to the Energy Department:
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2008 Model |
MPG* |
Class |
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Toyota Prius hybrid |
46 |
Midsize |
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Honda Civic hybrid |
42 |
Compact |
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Smart Fortwo coupe |
36 |
Two-seater |
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MINI Cooper (manual trans.) |
32 |
Minicompact |
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Toyota Yaris |
32 |
Subcompact |
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Ford Escape hybrid |
32 |
SUV |
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Mazda Tribute hybrid |
32 |
SUV |
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Mercury Mariner hybrid |
32 |
SUV | * Combined highway and city
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Account for expenses by vehicle, and determine how cost-effective each is to operate. Calculate costs per mile driven and get rid of vehicles that aren't performing. | |
One corporation that takes fuel efficiency seriously is UPS, which lowers costs with a unique policy. Drivers for the package delivery and transportation company are required to mostly make right turns on their delivery routes. These days, computers and programming plot out the courses in minutes, but years ago, managers used to make maps showing how routes could be efficiently driven by turning mostly right.
That policy -- combined with a computer sorting process that precisely loads trucks by address and order of delivery -- cuts the distance traveled each year and saves the company about 3 million gallons of gas.
Why do right hand turns save money? It usually takes more time and fuel to make a left turn because a driver in the left lane must sit, with the engine idling, waiting for an opening in traffic. And in many jurisdictions, drivers have the option to turn right on red after coming to a complete stop, which saves fuel and time.
Another way UPS saves on fuel costs is by training drivers to turn off their engines when stopping for deliveries. The no-idling policy also minimizes engine repair and replacement.
Idling gets zero miles per gallon and vehicles with larger engines typically waste more gas when they idle than those with smaller engines. Right turns and not letting engines idle are two ways companies can cut fuel costs and bolster the bottom line. Here are six more tips to help increase fuel efficiency.
Drive Smoothly and Follow the Speed Limit. Speeding, rapid acceleration and quick stops can lower fuel efficiency by as much as 33 percent at highway speeds and 5 percent in stop-and-go traffic.
While every vehicle reaches its optimal fuel economy at a different speed, gas mileage usually decreases at speeds above 60 mph.
As a rule of thumb, the U.S. Department of Energy reports that you can assume that each 5 mph you drive over 60 mph is like paying an additional 20 cents per gallon for gas.
On the highway, using cruise control helps drivers maintain a constant speed and generally saves gas.
Protect Vehicles from Fuel Theft. With sky-high gas prices, police departments around the country are finding more instances of gas being siphoned from vehicles.
One company in Shreveport, LA, added locking gas caps to its fleet of vehicles after spotting someone siphoning fuel from trucks in its parking lot. A not-for-profit food bank in San Jose, CA, was recently the victim of thieves siphoning about 200 gallons from delivery trucks. And even worse, a Rock Hill, SC, day-care center found thieves stole fuel from a bus by cutting the gas line.
Especially vulnerable are businesses with fleets of vehicles that are parked in unlocked, unwatched areas at night.
Plan Ahead to Cut Back. Cluster sales calls, deliveries, appointments and errands to eliminate trips and cut cross-town driving. Try to avoid peak travel times and road construction so you spend less time in traffic.
Your business could, for example, make deliveries only in certain areas on certain days. Making several short trips can consume more than twice as much fuel as one multi-purpose trip covering the same distance when the engine is warm and efficient.
Speaking of deliveries, if your company offers them for free, consider eliminating the practice or reducing the free area and charging for deliveries outside that radius.
Consider Buying More Efficient Vehicles. The Energy Department reports that the difference between a car that gets 20 MPG and one that gets 30 MPG amounts to $878 per year (assuming 15,000 miles of driving annually and a fuel cost of $3.51). That's an extra $4,388 in fuel costs over five years. Click here to access the federal government's Web site, which allows you to find and compare energy-efficient passenger vehicles.
Keep Vehicles in Tip-Top Shape. Simple and regular maintenance can help reduce the cost of operating your company's vehicles, as well as improve safety. For example, keep engines tuned, replace air filters regularly, keep tires properly inflated and use the recommended grade of motor oil.
According to the Energy Department, fixing a serious maintenance problem, such as a faulty oxygen sensor, can improve your mileage by as much as 40 percent.
Remove Excess Weight. Don't keep unnecessary, heavy items in vehicles. The Energy Department reports that an extra 100 pounds in a vehicle could reduce its MPG by up to 2 percent. Removing it could save 4 to 7 cents per gallon, depending on the vehicle weight.
Of course, gasoline isn't the only expense involved in operating a single car or a fleet. You must also take into account expenses such as financing, taxes, insurance, depreciation and trade-in values. But with today's record-high gas prices, it pays to improve the fuel efficiency of your vehicles.
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Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
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