How will the new April 2024 fuel tax increase affect truckers? Starting April 1st, 2024, Alberta will increase gas tax by 4 cents per litre provincially, while the carbon tax will be increased federally on the same day. Eventually, fuel costs are absorbed by the end seller of the product, but in the meanwhile, truckers will see an immediate increase in fuel expenses and may not see immediate increases in pay. This equates to 4 cents per litre more (increase from 9 cents to 13 cents) going to Alberta.
This is the same provincial fuel tax that was suspended all of last year. The tax stabilizes fuel prices (when oil goes below $80 a barrel, the fuel Alberta fuel tax is fully instated. As the price of oil goes up, the Alberta fuel tax phases out).
Federally, the carbon tax will increase as planned. It will add roughly 3 cents per litre on top of the provincial hike on April 1st.
One of the biggest direct costs we see in accounting for transportation companies if obviously fuel. Even the slightest increase in diesel prices can take a bite out of trucking profits. How can truck drivers cut down on their fuel expenses? Let’s go over some ideas on how Canadian Truck drivers can save a little on rising fuel costs, because a little can go a long way.
These are a few things I came up with for thought’s sake to save fuel for truckers in Canada.
Granny Driving.
Driving fast, accelerating rapidly, slamming on the brakes can all decrease fuel efficiency. Maintaining a constant speed at 90-95kmh will help save a little on the fuel expense. Keeping a safe and good distance from the vehicle in front of you will avoid having to slam on the brakes if the vehicle starts to slow down or turn.
Aerodynamics.
Trucks push a lot of air when driving down the highway. If you can do anything to make your truck more aerodynamic, it could save fuel costs over a long period of time. Obviously you want to make sure the vehicle is compliant with all road regulations before you go ahead adding wind deflectors.
Fuel-efficient Tires.
I’m an accountant, not a trucker. But, I am and have been really into tracking MPG for quite a while in my life. I’ve tried 2 sets of fuel-efficient tires on my car and noticed a small improvement in MPG. However, both sets of tires seemed to wear out much sooner than regular tires. If you have an opinion on fuel-efficient tires, please let me know your experience. I personally found that warn tires get much better fuel efficiency than new fuel-efficient tires. The safety may be reduced though, so you have to weigh this one out.
Take the most efficient route with GPS.
By driving a shorter distance, you’ll save fuel. It’s obvious, but sometimes we need to be reminded. A really good quality GPS might actually pay itself off in the form of fuel savings. This can help you select the shortest route or avoid idling in traffic for hours. It can save you time and fuel, so it’s on my list of ways to cut fuel costs. If you haul the same route all the time, you’ll get to know where and what time congestion starts.
Reduce engine idling.
If you can avoid idling your engine, give it a try. Not only will it save on fuel, it will also save on maintenance costs. According to the American Trucking Association, one hour of idling per day over the course of a year equates to 100,000km of engine wear on your truck’s motor. This is the idea behind newer vehicles cutting the engine at stops.
Find ways to avoid running empty loads.
Why waste fuel when you’re not getting paid? If there’s any possible way to get a load to haul, it will put income against your fuel expenses. Plan your trips out and see if you can find loads to take back on the return trip.
Fuel Cards and patronage.
Using a fuel card if you can will earn you rewards, savings, or cash back. Now this would be impossible if you are traveling out of province/country because there won’t be those fueling stations available everywhere you go.
Track, track, track.
As an accountant I track just about every aspect of my life. You can’t improve what you aren’t tracking. It’s as simple as that. Track your gas mileage and see what is working and what isn’t. little improvements to fuel mileage can add up, and that money goes straight into your pockets. If you need any accounting services as a Canadian trucker, please be sure to give us a call.
Got any good tips that you think I missed? Please let me know and I will add them to the list!
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