Rising fuel costs are indisputably hurting Owner-Operators. Simply put, the more you have to pay for fuel, the less income you take home. And knowing fuel costs are likely to stay high, finding ways to balance this cost and keep your business running is a significant challenge.
The Problem of Fuel Theft
In addition to the direct impact on your bottom line, another downside to the rise in fuel costs is fuel theft. As margins tighten, people become motivated to make ends meet in any way possible, even if the way they choose is unethical and illegal. Theft by siphoning fuel is most common and easy for someone with access to it and a cheap hose.
While you can't entirely prevent a thief from stealing your fuel, you can do everything possible to deter them from your vehicle and minimize the chance of fuel theft from happening to you.
Unfortunately, one of our Owner-Operators at TrueNorth knows this all too well. One early morning in southeastern Minnesota, he awoke after a night at a roadside park and prepared to head back out on the road. Unfortunately, as he walked around his truck during his pre-trip inspection, he immediately saw his fuel caps dangling in the wind.
What was just over a half-full tank of fuel when he parked for the night was now empty - without enough fuel to make it to the nearest fuel station. He was not only out of almost $1000, but he needed roadside assistance, which totaled an extra $500.
The owner-operator explains, "Before costs went up, fuel theft was less prevalent. Given the environment we're in, we need to re-think that. We need to be aware that this could happen to any one of us, any time."
It was an expensive lesson to learn, and one that he hopes no one else will experience.
Invest in Fuel Locks
One way to protect your fuel is to invest in a fuel lock! This is exactly what our owner-operator did once his truck was back up and running. Now, his locks help him feel much more secure and protected.
Fuel locks make it difficult for a thief to get into your fuel tanks. They lock securely in place and require a key to open. They often come with multiple keys to prevent you from getting locked out as the owner. This two-minute video shows a brief demonstration of how they work.
Types
There are different types of locks that can protect your fuel tanks. Some replace unsecured fuel caps with secure fuel caps, and other locks cover current fuel caps. The latter - cap covers - are known to be more versatile. Generally speaking, fuel caps are known to be durable to withstand any weather or condition. They are not something that you should need to replace frequently.
Costs
Regardless of the type you choose, fuel locks typically range from about $75 to $125 each, although certain types can be as low as $50 or as high as $200. It is not an insignificant cost, but paying it is much better than losing a few hundred gallons of diesel, not to mention the peace of mind.
Where to Purchase
You can purchase your fuel lock directly from a mechanic or online. If you are can, purchasing through a mechanic will help ensure that you have the lock that will work best for your particular fuel tank. Look for a place that guarantees satisfaction to make sure you know what you're purchasing.
Benefits Beyond fuel theft
Theft is not the only crime that happens when your fuel is unsecured. Tampering or other forms of sabotage can happen, too. Specifically, fuel contamination can severely damage your equipment and business when water, antifreeze, ball bearings, mothballs, or others get into your fuel tank if left unsecured.
The wrong thing put into your fuel tank could cost you much more than any fuel taken out of it, and protecting your tanks from any of these crimes through fuel locks is a worthwhile consideration.
other ways to minimize fuel costs
Outside of making sure your fuel tanks are secure, there are ways to reduce fuel costs. Our Fuel Economy series covers this topic in detail - from Part I - The Driver Makes All the Difference to Part 2 - Maintaining Existing Equipment to Part 3 - Investing in New Equipment.
It's also important to call out two particular areas where you can minimize your costs and maximize your bottom line - fuel discounts and fuel surcharges.
Fuel Discounts
Saving money when purchasing fuel. Many carriers negotiate discounts on the retail price for diesel. For instance, TrueNorth has agreements with a variety of fuel service providers, including Love's and Pilot Flying J, where you can save a considerable amount each time you need to fill up.
Fuel Surcharges
The increase in the price of fuel should be reflected in higher rates to get freight moved. Periodically reviewing all costs and rates is a sound business practice. Calculate your Cost-Per-Mile and figure out how to get the best freight rates.
If you use a fuel surcharge, you might want to consider removing a cap, as with today's diesel prices, the cap may have already been exceeded. Further, if you price on a flat-rate basis, you may want to consider adding a qualifier that if the price of diesel exceeds a certain amount (that you specify), then the flat rate will also increase by a certain amount. That way you can still price freight a week or so out without having to cancel loads due to increases in the price of fuel.
Final Thoughts
Our Owner-Operator's advice for others? "Fuel tank locks are 100% worth the investment. Go and get them now!"
Fuel is incredibly valuable and necessary to run your business. There has never been a more important time to protect it.
While fuel locks do not guarantee that a thief will not steal your fuel or mess with your tank, as some resort to picking the lock, or worse - using a drill, it does deter them, minimizing your chances of this happening to you.
We hope you stay safe and well on the road.
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