Every fleet is challenged with the common goals of reducing costs, increasing uptime and enhancing safety. Many times these goals can be in conflict with one another.
Preventive Maintenance (PM) intervals can be extended, but the result may be an increase in unscheduled maintenance. Downsizing a vehicle may create the expectation of a reduction in vehicle operating costs, but the result may end up mismatching duty cycles and creating potential safety issues.
The ultimate goal is to optimize these three goals and produce a positive impact on the fleet.
Alternative fuel options, such as propane autogas, can help achieve these common objectives. Propane autogas technology can reduce operating costs, increase productivity and, perhaps surprisingly, offer the benefit of a safer fuel than the native fuel source.
Not Just New Vehicles
The decision to adopt propane autogas is not limited to when a new vehicle is acquired. A vehicle can be converted at 25 percent or even 50 percent of its useful life and significantly reduce operational costs while offering a lower total cost of ownership.
If a fleet has made the decision to further extend a replacement cycle by repowering or rebuilding an asset, there is no better time to consider propane autogas.
Alliance AutoGas, by way of example, offers engineered systems that can be installed in only a few hours. These systems do not require any permanent vehicle modifications. All wiring is “plug and play.” Everything is bracketed and designed to be installed without any drilling or fabrication.
By deploying these features, labor times and conversion costs are significantly reduced. Fleets can experience a positive ROI with a partial asset life when reduced conversion costs are coupled with low, stable fuel prices.
Cost Reduction
For most fleets, the primary motivator for adopting autogas is a reduction in fuel costs. With today’s anomaly of cheap gasoline prices, it may be surprising to discover autogas is less expensive. As of January 1, propane autogas got a $0.36 per gallon tax credit, plus a reduction in the Federal Excise Tax of 5 cents per gallon.
Wholesale propane prices are proving to be very stable. Autogas suppliers can lock today’s prices out as far as three years.
Many customers claim that they can even extend service intervals with the adoption of autogas. However, I do caution against changing intervals without doing oil analysis and proper research.
Uptime
While some fleets prefer dedicated autogas vehicles, another option that also can affect uptime is a bi-fuel solution. With a bi-fuel system, the fleet has the ability to switch back to gasoline in the unlikely event of a problem.
In addition, the bi-fuel system has the potential to bypass a failed gasoline fuel system component, actually increasing uptime over OE components because all original components stay functional during a conversion. If the customer’s vehicle is running on gasoline and there was a fuel pump failure, for instance, the customer can switch to this system.
Another element of productivity is labor costs. Most autogas customers take advantage of a private fuel network. Many times the fuel location is on the customer’s site. By eliminating the inconvenience of having to go to a gas station, vehicle operator time can be saved by fueling on-site.
Safety
The last and most important goal is safety. Propane autogas has proven itself to be safer than gasoline. The two early adopters of autogas have been school buses and law enforcement – two customers where safety and reliability are paramount.
Autogas is stored in a puncture-resistant steel tank, has multiple mechanical back checks features and can’t be spilled, which eliminates groundwater contamination risk.
Recent innovations in dispensers and filling hardware, such as the ultra-low emission filling nozzle and the “safe connect” vehicle valve, give the operator the ability to fill the vehicle faster than gasoline without the need for any personal protective devices.
Ed Hoffman, serves as president of Blossman Services – the principal vehicle technology provider for Alliance AutoGas (www.allianceautogas.com) and a subsidiary of The Blossman Companies (www.blossmangas.com) – a leading nationwide propane dealer and the largest independent dealer of propane. He has more than 23 years of experience in the automotive and fleet operations, sales and management arena. For the past five years, Hoffman was the fleet and asset manager for Keystone Automotive Operations, the largest aftermarket auto parts distributor in North America.
