How to protect margins from rising fuel costs and fleet inefficiencies
Australian diesel prices hit record highs in early 2026 and remain high with wholesale diesel terminal gate prices across Australian capital cities rising by about 50% in under two weeks.
The Federal Government has implemented some measures to provide short term relief, but it does not change the structural reality: Australia imports more than 90% of its refined fuel, holds limited diesel reserves and remains exposed to global supply shocks.
The good news is that the ‘Big Three’ of driver behaviour, maintenance and route planning remain the greatest opportunities to reduce fuel use. Telematics gives operators the confidence to take action across all three.
For fleet operators, controlling the variables you can address has never been more important. Research consistently shows that these factors can influence fuel consumption by up to 30%, making them the most effective lever available when pump prices are beyond your control.
How does driver behaviour affect fleet fuel consumption
Driver behaviour is the single largest controllable factor in fleet fuel consumption. Analysis by the Massachusetts Institute of Technology found that speeding, rapid acceleration and harsh braking can reduce fuel economy by 15–30% at highway speeds and by as much as 40% in stop-and-go traffic.
For a heavy vehicle fleet running long-haul routes across Australia, even modest improvements translate to savings. Geotab’s research shows that for every 8 km/h a truck travels above 100 km/h, fuel consumption increases by roughly 15%.
Across a fleet of 50 trucks each covering 200,000km annually, a 10% improvement in fuel efficiency at today’s diesel prices represents annual savings in the hundreds of thousands of dollars.
Telematics platforms track speeding, harsh braking and acceleration, excessive idling time and RPM management. This data feeds into driver scorecards that identify coaching opportunities to support drivers in building habits that protect both safety and the bottom line.
Geotab Heavy Transport Australia Associate Vice president Andrew Hintz says rising fuel prices continue to place pressure on Australia’s transport sector, making fuel efficiency a growing priority for heavy vehicle fleets.
“The operators who are getting ahead right now are the ones using real-time data to coach their drivers and address inefficiencies before they compound,” he said.
How does predictive maintenance help improve fuel efficiency
Predictive maintenance is emerging as one of the most effective strategies for improving fuel economy across heavy vehicle fleets. Unlike traditional fixed-interval servicing, predictive maintenance uses real-time vehicle and engine data to identify potential faults before they affect performance or cause unplanned downtime.
In heavy transport, increasingly complex trucks mean that small mechanical issues can quickly increase fuel consumption.
- Underinflated tyres, which raise rolling resistance and can reduce fuel economy by 2% for every 10 PSI of underinflation
- Misaligned axles, which create drag and force the engine to work harder
- Clogged fuel and air filters, which restrict flow and reduce engine efficiency
- Faulty electrical sensors, which can cause the engine management system to use more fuel than necessary
Telematics connected to Controller Area Network (CAN) Bus systems and Tyre Pressure Monitoring Systems (TPMS) allow fleet managers to monitor these indicators in real time and detect issues early.
On average, it takes two weeks for a driver to report a dashboard warning. With predictive maintenance, problems are flagged and addressed before they erode fuel efficiency or escalate into costly breakdowns.
“Predictive maintenance is an important strategy that helps operators boost fuel efficiency,” Mr Hintz said.
“With increasingly complex trucks, faulty electrical sensors or small mechanical issues can quickly increase fuel consumption. Telematics gives fleet managers the visibility to catch these problems early and keep heavy trucks running efficiently.”
How does route optimisation reduce fuel costs
The fastest route on a map is not always the most fuel-efficient one. Route optimisation tools analyse variables including traffic conditions, road gradient, vehicle load and stop patterns to identify paths that minimise fuel consumption while still meeting delivery schedules.
Industry studies consistently show that route optimisation can reduce fuel costs by 10–15%. For Australian fleets operating across vast distances, even small percentage improvements per trip add up across hundreds of journeys each year.
Telematics platforms track fuel usage, time on road and route adherence in real time. This data allows fleet managers to compare planned versus actual routes, identify deviations and continuously refine dispatch decisions to reduce unnecessary kilometers and fuel burn.
How telematics turns fuel data into actionable decisions
A telematics platform consolidates vehicle data into a single, actionable dashboard. Fleet managers can monitor fuel consumption patterns, set alerts for inefficient behaviours, benchmark performance across the fleet and track improvement over time.
By consolidating these insights in one place, telematics moves fuel management from reactive guesswork to proactive, data-driven decision-making. The result is a measurable reduction in fuel costs, improved driver safety and a stronger environmental position. These outcomes compound over time as data quality and operational discipline improve.
You cannot control global oil prices, but you can control how efficiently your fleet uses fuel. Driver behaviour, predictive maintenance and route optimisation collectively influence up to 30% of fuel consumption and telematics platforms provide the real-time visibility needed to act on all three.
