Fuel costs have always been a major concern for haulage companies, but they’ve never been more important than they are right now. With diesel prices going up and down unpredictably and fuel costs making up around 30% of running costs for transport companies, every penny per litre makes a real difference to both fleet operators and owner-drivers.
In January 2025, diesel prices went up to over 143p per litre for the first time in four months, showing just how unpredictable fuel costs continue to be for the industry. Understanding how these price changes affect businesses and finding practical ways to deal with them has become crucial for staying profitable in today’s tough market.
How Rising Fuel Costs Hit Haulage Businesses
The Direct Financial Impact
When fuel prices go up, the effects spread through every part of haulage operations. A typical HGV covering 100,000 miles each year will use roughly 25,000 litres of diesel. At today’s prices, a 10p per litre increase means an extra £2,500 in annual fuel costs for each vehicle.
For bigger fleets, this quickly adds up. A company running 50 vehicles could face an extra £125,000 in fuel costs from a fairly small price increase. These figures don’t even include the knock-on effect of several price rises throughout the year.
Day-to-Day Pressures
Rising fuel costs put immediate pressure on profit margins. Many haulage companies work on tight margins of 3-5%, which means fuel price increases can quickly turn profitable jobs into money-losing ones. This forces some tough decisions:
- Contract renegotiation: Operators have to go back to customers to discuss fuel surcharges or price increases
- Route planning: Every mile costs more, making efficient routing really important
- Load planning: Getting the most out of each load becomes even more crucial
- Vehicle use: Keeping trucks busy and productive becomes essential
Market Effects
Recent figures show that road transport prices in the UK went up by 4.21% in April 2025 compared to the previous year, with much of this increase down to rising running costs, including fuel. This shows how fuel price pressures eventually lead to higher freight rates across the industry.
However, passing on cost increases isn’t always easy. Existing contracts often have fixed rates, and competitive pressure can make it hard for operators to put prices up straight away.
Practical Ways to Improve Fuel Efficiency
Driver Training and Better Driving
The difference between good and poor driving can be huge. Research shows a 35% difference in fuel use between the best and worst drivers, making driver training one of the best investments you can make.
Key driving techniques include:
- Looking ahead: Planning for traffic situations ahead reduces unnecessary braking and speeding up
- Smooth acceleration: Gradual acceleration uses much less fuel than aggressive starts
- Better gear use: Staying in higher gears when possible and avoiding too many gear changes
- Speed management: Staying at 65mph instead of 75mph can save 15% on fuel
- Cutting down idling: Unnecessary idling wastes fuel and money while creating more emissions
Vehicle Maintenance and Setup
Well-looked-after vehicles use less fuel. Regular maintenance focusing on fuel efficiency includes:
- Tyre pressure checks: Under-inflated tyres can increase fuel use by 1% for every 1.5 bar of under-inflation
- Better aerodynamics: Fitting side skirts, roof deflectors, and making sure loads are properly sheeted
- Engine care: Regular servicing, clean air filters, and properly set-up engines
- Weight management: Removing unnecessary kit and making sure loads are distributed properly
Route Planning and Technology
Modern technology offers real opportunities for fuel savings:
- Live traffic information: Avoiding busy areas keeps traffic flowing and saves fuel
- Route planning software: Working out the most efficient routes cuts down unnecessary miles
- Load combining: Putting deliveries together to reduce empty running
- Flexible routing: Changing routes based on current conditions
Fleet Management Systems
Investing in fleet management technology can deliver real fuel savings:
- Vehicle tracking systems: Monitoring driver behaviour and spotting areas for improvement
- Fuel usage reports: Tracking consumption patterns and finding inefficiencies
- Planned maintenance: Making sure vehicles run at their best
- Performance comparison: Comparing how drivers and vehicles perform across the fleet
Alternative Fuels and Electric Trucks: What’s Coming Next
The Electric Challenge
The UK government plans to phase out new non-zero-emission HGVs by 2040, with all new HGVs required to be zero-emission by that date. However, making the switch brings some big challenges:
Current Problems:
- Electric HGV range averages just under 140 miles
- Not enough charging points for commercial vehicles
- Much higher purchase costs (often double the price of diesel trucks)
- Reduced payload capacity
The Reality: Only 0.3% of the HGV market currently uses electric vehicles, showing just how far there is to go. The biggest problem is the lack of charging infrastructure suitable for HGVs. Without proper charging networks, drivers will struggle with longer journeys.
Hydrogen: A Promising Alternative
Many industry experts see hydrogen as a more practical option for heavy goods transport:
Hydrogen Advantages:
- Longer driving range than electric vehicles
- Much faster refuelling (similar to diesel)
- Hydrogen stations can be added to existing truck stops
- No payload penalties from heavy batteries
What This Means for Operators
The move towards alternative fuels will happen gradually, but operators should start planning:
Short-term (next 5 years):
- Focus on maximising diesel efficiency
- Monitor electric and hydrogen developments
- Consider electric vehicles for short, regular routes
- Invest in driver training and fuel efficiency measures
Medium-term (5-10 years):
- Trial alternative fuel vehicles for suitable operations
- Plan charging or refuelling infrastructure
- Build alternative fuel considerations into fleet replacement plans
- Stay updated on government incentives and grants
Current Financial Support
The government offers several incentives to help with the transition:
- Plug-in Van Grant: £25,000 discount for eligible electric HGVs over 12,000kg
- Zero Emission Road Freight Demonstrator Programme: Supporting the development of zero-emission freight
- Enhanced Capital Allowances: Tax benefits for qualifying low-emission vehicles
Making Fuel Costs Work for Your Business
The Immediate Steps
While the industry waits for alternative fuel infrastructure to develop, there are practical steps every operator can take right now:
- Assess your current fuel usage: Track consumption across your fleet to identify the biggest opportunities for savings
- Invest in driver training: Studies show fuel efficiency improvements of 5-10% from proper training
- Review your routes: Use modern planning tools to cut unnecessary miles
- Maintain your vehicles: Focus on fuel-efficient maintenance practices
- Monitor performance: Use fleet management systems to track improvements
Building Long-term Resilience
Smart operators are already preparing for the changing landscape:
Diversify your approach: Don’t rely on just one strategy. Combine better driving, efficient routing, proper maintenance, and new technology where it makes sense.
Stay informed: Keep up with fuel price trends, government policy changes, and new technology developments that could affect your business.
Plan ahead: Consider how alternative fuels might work for your specific operations. Urban delivery companies might benefit from electric vehicles sooner than long-haul operators.
The Bottom Line
Fuel costs will always be a major factor in haulage operations, but they don’t have to control your business. The companies that will thrive are those that take a proactive approach to fuel efficiency while preparing for the changes ahead.
Whether it’s training drivers to use 15% less fuel, planning routes that save hundreds of miles per week, or preparing for the eventual switch to alternative fuels, every step towards better fuel management strengthens your business against future price shocks.
The haulage industry has always adapted to challenges, and the current fuel situation is no different. By focusing on efficiency today and planning for tomorrow’s technologies, operators can build businesses that remain profitable regardless of what happens at the pumps.
Working with JT Few
At JT Few, we provide professional haulage services across Suffolk, Essex, and the wider East Anglia region. With our fleet of tippers ranging from 7.5 tonnes to 44 tonnes, we understand first-hand how fuel costs impact every aspect of haulage operations.
We’ve built our business on efficient operations and smart logistics, helping clients across construction, agriculture, manufacturing, and other industries get their goods moved cost-effectively. Our experience managing fuel costs and operational efficiency means we can offer both full-load and part-load services at competitive rates, even when fuel prices are volatile.
Whether you need light haulage services, full truckloads, or specialised transport solutions, our team understands the importance of balancing cost control with reliable, timely delivery.
Need reliable haulage services? Contact JT Few today to discuss your transport requirements and discover how our efficient operations can benefit your business.
Call us on 01473 831 872 for more information.
