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Businesses look to alternative-fuel fleets to offset price of oil

  • 16 May 2012
  • By Hayley Pink

One-in-four businesses are considering introducing alternative-fuel vehicles to their fleets in an attempt to mitigate the rising cost of oil, according to new research from advisory firm Grant Thornton.

The International Business Report reveals that 69% of those businesses surveyed cite the price of oil, currently US$111 per barrel, as the main reason to seek alternatives.

Impact on the company’s bottom line was also a key decision, with 55% of businesses citing tax relief and 62% cost management as factors, while 58% were keen to reduce the impact their fleets have on the environment.

Daniel Taylor, partner head of automotive at Grant Thornton UK, says: “With the US and the EU pressing ahead with sanctions against Iran, the world’s fourth largest oil producer, it seems unlikely that prices at the pumps will ease significantly in the near future.

“Many dynamic businesses are therefore looking to determine whether switching their fleets to alternative fuels could offer cost savings, allowing them to free up resources which could be better employed in efforts to expand their operations.”

Among those respondents who have not considered alternative fuel vehicles, cost (49%) emerges as the greatest constraint, closely followed by the difficulty of charging/refuelling (48%) and a lack of choice (38%).

Taylor adds: “Given the high cost of alternative fuel vehicles at present, incentives will be a key driver of more widespread adoption. However, increased production of alternative fuel vehicles should lower costs, increase awareness, and spur businesses to consider them when opportunities arise to expand or replace their fleets.”

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Article source: http://www.commercialmotor.com:80/latest-news/businesses-look-to-alternative-fuel-fleets-to-offset-price-of-oil