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Fuel Price Surge in Canada: Implications for the Transportation Industry and How Fleet Management Can Soften the Blow

Fuel Price Surge

Canada, like most countries globally, is currently grappling with inflation woes.

According to Statistics Canada, annual inflation rate rose to 3.3% in July and that’s up from 2.8% in June. One of the biggest contributing factors is the surge in fuel prices.

According to data from the Canadian Automobile Association (CAA), the average price across the country on Aug. 16 is 169.3 cents per litre. A week ago the average was 163.9 cents per litre.

If we compare avg. gas prices in Canada from June 2023 to Aug 2023 according to the chart from CTVNews, most of provinces show that Gas prices have been on the rise for months.

avg. gas price in canada

Avg. gas price in Canada from June 2023 to Aug 2023


For industries heavily reliant on fuel, like logistics and trucking, the impact is compounded.

Thankfully every cloud has a silver lining, and for these industries, fleet management software may just be that lifeline.


The Impact of Rising Fuel Costs on Logistics and Trucking

Fuel is a primary operating expense for the logistics and trucking sectors. With ever increasing prices:

  1. Operational Costs Spiral: Higher fuel costs imply increased operational expenses. This forces businesses to adjust their budgets and can lead to reduced profits.


  1. Price Hikes for Customers: To counterbalance the increased operational expenses, businesses often pass on a fraction of the cost to customers. This can deter clientele and reduce demand.


  1. Cutbacks and Layoffs: If businesses can’t absorb or offset the increased costs, they might resort to cutbacks, reducing fleets, or even layoffs.


  1. Reduced Competitive Edge: Smaller companies without the buffer of large capital reserves might find it tough to compete with larger corporations, resulting in market consolidation.


The Beacon of Hope: Fleet Management Solutions

Competing in an environment with escalating fuel prices is undeniably challenging. But, with the right strategies in place, made possible by advanced fleet management solutions, industries can navigate these turbulent times:


  1. Optimal Route Planning: With GPS fleet management tools like ours, businesses can plan the most fuel-efficient routes. Avoiding traffic-congested areas and finding shorter routes can lead to significant fuel savings.


  1. ad plus forward camera collision warningDriver Behavior Analysis: Excessive idling, harsh braking, rapid acceleration, and speeding can guzzle fuel. Fleet management software monitors driver behavior, allowing for timely feedback and training, leading to more fuel-efficient driving habits.






  1. maintenance alertRegular Maintenance Alerts: Well-maintained vehicles consume fuel more efficiently. Fleet management tools can schedule and monitor regular maintenance checks to ensure vehicles run at their optimal efficiency.





fuel management (3)


  1. Fuel Consumption Reports: Detailed reports allow businesses to pinpoint vehicles or routes that are particularly fuel-inefficient. By addressing these anomalies, businesses can directly reduce their fuel expenses.





fuel management dashboard


  1. Idle Time Reduction: Idling is a silent fuel consumer. Advanced fleet solutions provide data on vehicle idling times, prompting businesses to take corrective measures.



Canada’s ongoing fuel price increases, driven by inflation, is unquestionably a source of concern for logistics and trucking industries. By leveraging the power of fleet management solutions, these sectors can not only cushion the blow but also optimize their operations for the future.


While industry giants offer well marketed solutions, we believe our platform’s unique customization capability gives businesses the tailored insights they need to combat rising fuel prices effectively.

To help you manage fuel costs, we leverage fuel data available from onboard computers and after-market fuel level sensors, installed in the fuel tank, or on the fuel line of your vehicles and equipment.

Combined with properly leveraging our Fleet Management system to change driving behaviours and habits, our results are a savings of 15-30% on fuel costs and an increase in overall fleet efficiency of at least 30%.


Let’s work together to curb inflation, reduce overhead and operating costs, and remain competitive to keep our businesses growing.  For more details, visit our website: LVM Track Solutions

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