• Fleet managers establish fuel networks to make sure their drivers are getting the best possible price for fuel.

Fuel networks are agreements with fuel stops, fuel chains, or fuel suppliers that allow the carrier to negotiate the best possible price for fuel at all times. Many fuel networks involve the carrier paying cost for the fuel, as established by contract, plus a fee (cost-plus programs). Another way these programs are structured is based on a “discount” off the pump price. Both programs can be straightforward, based on a specified fee or discount in cents per gallon or percentage, or they can be more complex, adjusting the fuel pricing to the number of gallons purchased. There are several ways fuel networks can be established.

• Exclusive network agreement. Under this arrangement the carrier attempts to leverage the maximum negotiating power available to them by negotiating to purchase all fuel from one supplier. The supplier, in exchange for the guaranteed business, will provide the carrier with a reduced price on the fuel through either a cost-plus program or a discount. Many fuel companies offer nationwide fuel networks, which includes the use of their fuel credit card.
• Company network. A company network is built by studying the movements of the fleet, locating fueling locations that would best serve the fleet, and then negotiating directly with fuel stops in those locations. To be most successful at this, the carrier will need to project the fuel purchases (in gallons and frequency) the carrier will be making at each fuel stop.
• Off-network fueling. The fleet manager will need to consider having a tracking mechanism in place to identify problems with the network. Problems can include not having a fuel stop in a needed location and drivers not using the existing stops.

Fuel stops that are too far apart will lead to drivers not using the fuel network to its best capacity. If the driver needs to fuel off-network because stops are too far apart, the driver will generally fill up, rather than get just enough fuel to make it to a network fuel stop. This is because drivers do not like to stop for fuel any more often than is necessary. Fuel stops cost time, and in most circumstances the driver must log on-duty time for the fueling. To avoid this, provide fuel stops that are within range of each other based on the fuel capacity and fuel mileage of the company vehicles.

The opposite can also be true. If fuel stops are located too close together, the fleet’s purchasing power will be diluted. This can lead to the loss of the discounts the network was intended to realize. If the distributor or retailer feels the network is not helping their fuel stops, they may reduce the discount or drop the discount program completely.