Most Fleet Managers Are Wasting Time Tracking Employee Fuel Theft

Fuel theft by employees is a common problem for companies that operate fleets, and it costs the trucking industry over a billion dollars annually. So it’s understandable that companies do all they can to curb the problem. 

But most of them are wasting their time trying to catch employees stealing company fuel.  The methods they use have limited effectiveness and take up a lot of precious time and resources for fleet managers and other employees who provide oversight. These methods are largely manual (thus use up a lot of time), they are easy for unscrupulous employees to work around, they are expensive to implement, and they affect employee morale, leading to lower productivity and high turnover. 

In this post, I’ll argue why how companies track employee fuel theft is a waste of time, plus how they can do it more effectively and efficiently. 

Manual Processes

The most basic way to track fuel usage is to compare fuel logs against odometer readings. It’s also the most tedious and time-consuming method to nab employees stealing fuel. You have to take odometer readings before and after each trip, then compare mileage to fuel consumption. You also need to go through receipts to confirm fuel purchases. 

The problems with this approach are many: 

• Extremely time-consuming to the point where it becomes impossible if you have a large fleet. Managers then resort to spot checks, which can lead to theft cases going unnoticed. 

• Because everything is manual, human error is more likely, leading either to unnoticed theft or false accusations against employees.

• It’s vulnerable to manipulation. Employees can adjust or fabricate logs to cover their tracks, sometimes with the help of gas station attendants.

• It does not account for factors that can affect fuel consumption including driving style, differences in routes, and driving conditions. So when you notice unusual fuel consumption, you cannot be sure whether it’s normal or a case of theft.   

Punitive Measures

Companies often employ punitive or hostile measures to try to catch employees red-handed with methods like over-surveillance (cameras in the truck, at gas stations, and other areas), spot interrogations, unfounded accusations, and blanket punishments. 

For example, fleet managers may demand explanations every time drivers purchase fuel or for any minor discrepancy in fuel usage. 

These measures are not only ineffective in stopping fuel theft, they also create an air of hostility and suspicion in the workplace. Employee morale may go down, often resulting in less productivity and increased turnover, which could end up costing you even more money. 

Three Better Alternatives to Track Employee Fuel Theft

If most of the methods companies use to track and catch employee fuel theft don’t work, what’s the best way to do it? 

There are three digital alternatives that save time, are cheaper to use, and are more effective in tracking fuel theft.  

1. Tracking Devices 

Companies already use GPS devices in their fleets for location tracking, route optimization, and fleet dispatch. Add a fuel level sensor and telematics software and you can easily (and automatically) monitor fuel consumption and detect unusual patterns that may indicate theft. 

To do this, combine data from the GPS tracker (route, distance, speed, starts & stops etc.) with data from a GPS fuel sensor (fuel level changes) in a telematics software. You’ll then need to set the baseline consumption metrics for each vehicle.  

With that done, now you can analyse collected data to spot any out of place patterns such as:

• Sudden fuel drops, especially when the vehicle is not in motion. This might indicate siphoning. 

• Fuel consumption during off-hours or when the vehicle is not on an assigned route. 

• Fuel consumption is higher than expected based on distance travelled, average speed, and type of route. 

Depending on the features of the particular telematics software you are using, you can also automate some of the analysis and get automatic alerts if something doesn’t add up. 

Analysing fuel consumption this way is not just good for catching fuel theft, it can also help spot any inefficiencies in your fleet and fix them. You might notice that some routes consume more fuel than others, maybe some vehicles are using more fuel than expected, or the driving behavior of some drivers is using more fuel.   

As you look for cases of fuel theft, also check whether you need to optimize your routes, service your vehicles, or train your drivers on efficient driving. 

2. Fuel Cards 

If you are still giving your drivers cash or credit cards to pay for fuel, you are leaving yourself massively exposed to fraudulent activity. Fleet fuel cards are the best way for your drivers to pay for fuel. 

With fuel cards, you can: 

• Set spending limits per transaction, per day or per trip. This ensures drivers don’t buy more fuel than is necessary. 

• Set limits on where the cards can be used. This stops drivers from fueling personal cars away from designated stations. 

• Automatically block transactions on fuel purchases that exceed the vehicle’s tank capacity. Drivers cannot fuel non-company vehicles.

• Track fuel usage and expenses in real time. You get an accurate picture of how much you are spending on fuel daily, weekly or monthly. You can easily spot an anomaly. When linked to telematics, most fuel cards can automatically flag changes in fuel use. This could be a sign of poor driving behavior, mechanical problems with the vehicle, or fuel theft. 

3. Fleet Management System

The best solution to prevent employee fuel theft is a fleet management software that combines all the above data — mileage from GPS tracker, fuel expenses, fuel level sensor — into one easily accessible dashboard. 

At a glance, you can see how fuel usage measures up against fuel spend and mileage. 

To make it even easier, some fleet management software like Fleetio will do this automatically for you. Fleetio pulls data from GPS, telematics and integrated fuel cards to monitor fuel consumption. It can quickly detect and alert you to any fuel theft and other kinds of fraud.

Final Thoughts

By switching to one of the alternatives we’ve discussed, you can still keep your employees accountable without being hostile towards them or wasting your time cross-checking manual records.