Rightsizing your Fleet to Beat Rising Petrol Prices in South Africa
Local fleet managers are under tremendous pressure because of rising diesel and petrol prices in South Africa. To say it’s tough is an understatement.
Fear not.
By optimising your fleet size and composition, you can tackle both challenges at once!
Buckle up because we’re about to cruise through the value of rightsizing your fleet for optimal cost efficiency.

Why are South African Fuel Prices Rising?
There are a few factors contributing to South Africa’s skyrocketing fuel prices.
1. Global Crude Oil Price: The primary culprit is the rising international price of crude oil. Geopolitical tensions, supply chain disruptions, and increased global demand lead to higher crude oil prices, which directly impact the Basic Fuel Price (BFP) in South Africa.
2. Weakening Rand: The weakening of the South African Rand (ZAR) against the US Dollar (USD) means it takes more Rands to buy the same amount of oil, further driving up the BFP and, ultimately, the pump price.
3. Government Taxes and Levies: It’s no secret that we pay various taxes and levies on fuel, including the General Fuel Levy (GFL) and the Road Accident Fund (RAF) levy. These levies contribute a significant portion (around 40%) to the final fuel price. While these levies generate revenue for the government, they also add to our overall cost burden.
Why Traditional Fleet Cost Management Strategies Aren’t Enough
When you’re facing increasing fuel costs, the textbook answer is to
- Analyse fuel spend (here’s the Intelligent way to read your fuel data)
- adopt fuel-efficient vehicles,
- optimise routes, and
- roll out driver training.
The textbook hasn’t considered the magnitude of the current diesel and petrol prices in South Africa! The fuel price hikes are so severe that traditional cost-saving exercises are eclipsed. Those strategies will help, but they can’t fully offset the dramatic increases in fuel expenditure.
What now?

Rightsizing: Finding the Sweet Spot in Your Fleet
Fleet rightsizing means ensuring your fleet has the optimal number and type of vehicles to meet your business needs. Simply put, having the right amount of suitable vehicles.
Fleets can become bloated over time, accumulating underused or unsuitable vehicles. Rightsizing tackles this by streamlining your fleet for efficiency and cost-effectiveness.

The Benefits of Fleet Rightsizing
Having the right vehicles for the job can improve operational efficiency and ensure your fleet remains fit for purpose.
Fleet rightsizing reduces unnecessary expenditure on fuel, insurance, and maintenance. It also minimises environmental impact by promoting fuel efficiency (potentially allowing for electric vehicle integration—we can hope).
1. Gather data:
Compile information on vehicle usage, mileage, fuel consumption, and maintenance costs. This data paints a clear picture of your fleet’s activity.
2. Analyse utilisation:
Identify vehicles that are underused or over-specced for their tasks. Are there large vans or bakkies used for small deliveries? Can smaller cars replace some guzzlers? Read our article about combating excessive CPK here.
3. Develop a plan:
Based on your analysis, create a plan to optimise your fleet. This might involve selling underused vehicles, reassigning them to more suitable roles, or acquiring new, more efficient models.
4. Implement and monitor:
Put your plan into action. Continuously monitor your fleet’s performance and adjust your strategy as needed. Consider using fleet management software to track data and identify areas for further improvement.
To sum it up: Sell, swap, or consolidate! Every unnecessary vehicle drains on your wallet and the environment.
Remember, the journey to an optimised fleet is continuous. Regularly evaluate your needs, embrace new technologies, and stay informed about regulations and incentives.
Data is your friend! Use FleetIT to track vehicle costs, fuel consumption, and vehicle allocations. Gain insights to optimise routes, identify wasteful idling, and encourage eco-friendly driving.
When you partner with us, you’re accessing a team of local experts who understand current petrol prices in South Africa and the economic landscape. This knowledge positions us to offer tailored solutions.