Fuel as a % of Revenue

I use it as a month to month barometer for my own calculations, comparing one month to another. It only gives me an indication of my operation. Percentage-wise what works for me, might not be good for another

 

Looks line we were typing at the same time Low Max.

You've got it right I think. What you call AF$, accountants call Gross Profit.

It's kinda like Cost PLUS fuel.

 

4.5 Imperial gallons is 5.4 US gallons according to the Google.

 

All i know is that every time Fuel goes up like right now, i eat less in Restaurants and start being more frugal on everything. Luckly if fuel goes $4.25 nationally, i get an increase in rates!

 

Before I used to care about fuel mileage, my percentage of fuel cost to gross revenue was around 35% and now that I work very hard on my fuel mileage since 2010 my last year fuel mileage was 8.99 mpg that related to 20% fuel cost of gross revenue running fewer loads and fewer miles than previous years making more net profit in 2012 than any year in at least the last 10 years that my records have been kept on computer.

My goal is to get that down to 16% with more time to be picky on rates for a higher gross profit (after fuel expense) and more time to work on getting the fuel cost down with even better fuel mileage and less idling.

Another thing I noticed in slowing down also dropped my maintainence cost including all repairs with tires and oil changes went down around 5% of the revenue that if you included less maintainence cost and less fuel cost percentages together is a 20% increase in net profit from the gross revenue that is more than the average company driver makes in gross salary a year. The truck needs fewer repairs, the tires last longer (more miles) and oil samples don't require oil changes as often.

It is not how much you gross, but how much you keep that is important.

 

I have a friend who had fuel costs as high as 43$ at one point pulling a van. I like to look at fuel as a percentage as well as the actual dollar amount of the rate. When negotiating rates, I always look at what it costs to run the truck and see whether the load is profitable. Fuel is only one component in the costs of running class 8 equipment, although it is usually the largest single expense. I mention this because some owners only consider fuel costs when it comes to whether they are willing to haul a load. You need to know your actual breakeven for all costs.

 

If you're pulling Super B's and getting 4.5 MPG Imperial, then your fuel cost per mile is equal to the price per Liter minus GST.

That's handy for a quick reference.

 

YTD, my fuel cost % is 24% of gross revenue.

But, really. It depends on what you do. Each load is its own thing. If you do one load for $1000 for 200 miles, or do $1400 for 700 miles, your % would fluctuate wildly. It all depends on what loads you run. Are you running light loads, heavy loads? In mountains? In winter? With or against the wind?