Hello again,
I had someone ask me recently, “how much does a tenth of a mile per gallon of fuel save me in a year?” My response was “it depends which tenth your speaking about”. I explained the savings on a tenth of 5.5 vs 5.6 is much greater than going from 8.5 vs 8.6 mpg.
We sat down to discuss how these calculations should effect decisions regarding purchasing fuel saving equipment and options. Here are some calculations based on driving 120,000 miles a year, 2,500 miles a week for 48 out of 52 weeks in a year. Figure on fuel @ $4.00 a gallon.
@5.5 mpg you would burn 21,818 gallons of fuel at a cost of $87,272.00
@5.6 mpg you would burn 21,428 gallons of fuel at a cost of $85,714.00
The savings between these two would be $1,558.00
@6.5 mpg you would burn 18,461 gallons of fuel at a cost of $73,844.00
@6.6 mpg you would burn 18,181 gallons of fuel at a cost of $72,724.00
The savings between these two would be $1,120.00
@7.5 mpg you would burn 16,000 gallons of fuel at a cost of $64,000
@7.6 mpg you would burn 15,789 gallons of fuel at a cost of $63,156
The savings between these two would be $844.00
@8.5 mpg you would burn 14,117 gallons of fuel at a cost of $56,468
@8.6 mpg you would burn 13,953 gallons of fuel at a cost of $55,812
The savings between these two would be $656.00
As you can see, the tenth between 5.5 and 5.6 was $1,558.00. The savings between 8.5 and 8.6 is only $656.00 which is 2.375 times less savings than the tenth between 5.5 and 5.6.
The points I’m trying to make are that you need to pay attention as you increase your fuel mileage, the return on investment can take longer depending on the expense you take on. Let’s remember, it wasn’t that long ago when 5.5 mpg was common. The savings from going from 5.5 to 8.6 is 7,865 gallons at $4.00 a gallon this would equal $31,460.00 in a year. On 48 weeks the savings per week would be $655.41.
As I say “A Tenth Saved is A Tenth Earned”! Always remember, tenths do matter!

Henry

Comments (3)

Henry Albert

Henry Albert is the owner of Albert Transport, Inc., based in Statesville, NC. Before participating in the "Slice of Life" program, Albert drove a 2001 Freightliner Century Class S/T™, and will use his Cascadia for general freight and a dry van trailer. Albert, who has been a trucker since 1983, was recognized by Overdrive as its 2007 Trucker of the Year.

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It always amazes me how few drivers can operate a calculator, but yet want to run their own business. This basic kind of conceptual math is a wonderful example.

June 28, 2014 15:26:22 PM

Great information Henery! It seems that we can never do enough to educate drivers on the importance of managing their cost.

June 26, 2014 13:41:45 PM

Reminds me of the old saying "A penny earned is a penny saved"

June 25, 2014 5:38:51 AM