The Hidden Costs of Fuel
Wednesday, Dec 7, 2022
Total Cost of Ownership (TCO) is a financial estimate intended to help determine the direct and indirect costs of a product or service. Not unlike an iceberg however, there is often a tendency to focus solely on visible upfront costs and overlook the hidden smaller details.
The cost of fuel is not always about the amount consumed. Measuring the fuel consumption of an industrial diesel engine and the effect on total cost of ownership (TCO) often involves more than monitoring the fuel gauge. When determining fuel consumption as a component of Total Cost of Ownership it is important to also consider indirect operating costs including:
Logistical Cost of Refilling: Low fuel consumption means refilling less often. “If you operate remotely and need a fuel tank to transport fuel to your machine, then lowering the number of trips will have a huge impact on your logistics costs,” says Per Karlsson Application Engineer, Volvo Penta.
Impact on Productivity: In situations where logistical costs are not a significant factor, lower fuel consumption could open up the possibility of using a smaller tank. This in turn could increase the payload of your vehicle. “In many industries, such as mining, every extra kilo of payload can quickly add up and make a significant contribution to a company’s bottom line. Especially if your vehicle is making multiple trips a day,” adds Karlsson.
Time is Money: “The cost of fuel isn’t always about the amount you consume. It can also be about the impact of refilling and what that means for your business,” says Per Karlsson. “Only by taking all these factors into account can you fully understand the true cost of fuel on your TCO
Learn more about TCO for industrial diesel engines and learn about the-hidden-costs-of-fuel. To learn more please navigate to www.volvopenta.com and search News or follow the Volvo Penta website link below.
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Phone: (08) 8682 1753