How Your Small Business Can Survive the Fuel Price Increases
- Out of the Box Advisors
- May 19
- 13 min read
If filling up the tank lately has started to feel like a small mugging, you are not imagining it. Gas prices have climbed to their highest point in roughly four years, with the national average sitting north of $4.50 a gallon and up around 44% from where it was a year ago.
The cause this time is largely overseas (COVID was our last reasoning...anyone sick of this yet?): conflict in the Middle East and disruption around the Strait of Hormuz have squeezed global oil supply, and the pump is where the rest of us feel it.
If you ran a business through the 2022 fuel spike, some of this will feel familiar. But familiar does not mean handled. Plenty of owners white-knuckled their way through that one without a real plan, and a repeat performance is not a strategy. The good news is that surviving expensive fuel is a solvable problem, and most of the solutions are things you control.
For many small businesses, fuel is the line item quietly causing the most daily stress right now, especially newer small businesses operating on thinner margins. Thankfully, there are concrete, practical things you can do to blunt the impact.
We have put together several moves that can help you start reducing your small business fuel costs today.
Unboxed Wisdom: Fast Ways to Cut Your Fuel Bill
Drive fewer miles, deliberately. Route optimization alone can trim fuel spend by roughly 10%.
Cluster your stops. Three full days beat five half-empty ones for the same revenue and far less fuel.
Let apps and rewards do the haggling. Price-comparison and cash-back fuel programs are free money you are probably leaving on the table.
Maintenance is fuel economy. An under-inflated tire or a skipped service quietly burns gas every single mile.
Mind your speed. Most vehicles hit peak efficiency around 50-55 mph; every 5 mph over that is like paying extra per gallon.
A newer or hybrid fleet pays off faster when fuel is expensive. The math changes when gas is at a four-year high.
Skip the trip entirely. Virtual meetings and smart incentives mean fuel you never have to buy.
Use Route Optimization to Minimize Your Driving
Not to be too cheeky here, but the easiest method is to simply drive less. We chose to start out here, in part, because this is something you should have been doing already. Doing whatever it takes to drive less has the obvious benefit of reducing the amount of your budget you are spending on fuel.
But we know it isn’t just that simple, is it? This is especially true for service-based businesses that must drive to their customers to survive. For them, fuel costs directly impact them day-to-day.
This leads us to our first recommendation: Using Route Optimization.
Let’s start with an easy example: If you have five errands to make over town, Route Optimization helps you map it out in a way that makes the most economical sense, stop by stop.
In its most basic form Route Optimization will help you reduce the total amount of miles driven. Something that can be done manually in the office, albeit with a bit of effort. However, if you choose to implement a tool designed for optimization, that typically gives your business the ability to account for things like traffic, lights, and stop signs. All of which can impact your MPG.
The good news, again especially for service businesses, is that if you are using a scheduling tool for your work orders etc., then there is an exceptionally strong chance that they also offer optimization.
One important consideration regarding Route Optimization is its potential impact on fuel costs. As a general guideline, implementing some form of route optimization can typically lead to approximately a 10% reduction in fuel expenses. This is an estimate that can provide a useful benchmark when evaluating the cost-effectiveness of any route optimization tool. It’s worth emphasizing that fact as it holds true in most cases, making it a valuable aspect to consider.
Save Up Your Stops for a Single Day
To ride the momentum of the *ahem* obvious first example, the next item to reducing your fuel costs are to begin to accumulate your stops for single, or small group, of days.
For service companies, if your capacity is somewhere in the range of 8-10 stops per day, then you should avoid scheduling any days / technicians with anything less than 8 stops. Since your revenue stream comes mostly from completed work orders, then you can still achieve roughly the same income from 3 10-stop days as you would with 5 6-stop days. Take this reasoning with a grain of salt that works best for your business, but generally the logic is sound.
For small businesses where customers come to you, consider scheduling your errands or other runs on a single day a week or month. If you continue to do one-off trips this handicaps your ability to optimize your routes. However, if you make a list of stops and manage your supplies etc. accordingly, then you can make all your stops on a single run and can minimize your mileage etc.
Use Gas Apps and Rewards Programs
Nowadays, there are as many gas apps out there that can help save you money on fuel as there are silly games.
Some of these apps simply show you the prices at different gas stations so you can choose the one that is the cheapest. While other apps give you cash back on gas if you go to gas stations that they partner with. Surprisingly, most of them are legitimate too. We have had first-hand experience with a few of them and have money in the bank as proof!
In addition to apps, there are also many reward programs that can help you gather points that you can redeem on items, save money on fuel, or give you other discounts. Many of these reward programs can be found at grocery stores, credit card companies, warehouse clubs, and more.
If your fleet is sufficiently large, it may also benefit you to investigate loyalty programs / credit cards with specific gas stations that offer fleet services and prices. However, this one may limit you in terms of stations for your service area, so make sure you do your research. Driving out of the way for a valid station can easily negate any savings.
Keep Up with Your Vehicle Maintenance
Being a slacker with keeping your vehicles or fleet up to date with the maintenance that it needs is a surefire way to ensure you burn through fuel you wouldn’t otherwise. This shouldn’t come as a surprise, but it’s also an item that can easily be overlooked. Especially if you, as the business owner, are somewhat removed from the maintenance schedule of your work-related vehicles.
If you haven’t already, make sure that you have an official maintenance policy. Any policy should contain routine maintenance schedules (important: make sure to include mileage triggers as well so that you don’t accidentally wait too long for routine service), explicit roles and responsibilities, and a detailed process for how to handle anything more serious than routine. For example: a form for a technician to fill out (preferably online) when their vehicle is exhibiting anything out of norm. Empower and encourage your employees keep your fleet in the best shape it can be. If formal policies are not your strong suit, our guide on how clear policies build a stronger business is a useful starting point.
Don’t forget that it even comes down to the little things. Let’s say you have a semi-deflated tire, and your tire pressure light has been on for a few days, you are absolutely eating into that precious gas mileage. This means more money down the drain on gas that could otherwise be in your bottom line!
Since that’s the last thing you need when gas prices are already so high, you want to make sure you are staying up to date with every part of your car’s maintenance schedule to ensure you are getting the best gas mileage you can.
Bonus: From a reputation perspective, having a clean and efficient vehicle running around town with your logo slapped on it is going to garner a far more positive brand impact than one with black smoke kicking out the back.
Slow Down and Speed Up to Save
Let me start off a bit personal, both my parents will totally have a chuckle when they read this one. I was NOT the slowest car on the road in my younger days. Ironically enough, one of the few items that has slowed me down over the years is the wasted fuel exhibited during… shenanigans.
But perhaps at some point you’ve wondered what speed is the best for using the least amount of gas? Oddly enough, slow isn’t always the most efficient choice. I know no one is likely to have a fleet of jets who may be reading this, but it’s a great example: Did you know that a commercial jet flying at altitude is significantly more efficient than it is simply sitting at idle?
That same logic can sometimes apply to your fleet. By choosing routes that maximize a highway over a city road is a great example of where “speeding up” can save fuel. In this case it is not so much the speed of the vehicle, but rather the rate of idle at stop signs etc. that leads to the savings.
Buuut… there’s an obvious limit. Even if you do most of your driving on the highway, observing speed limits can help you save. The benefit “speeding up” of a highway is in its comparison to a city street. So, if you’re doing your own impression of cannonball run, you might want to slow down a bit and save yourself the added fuel costs.
Obligatory Statistic: Most vehicles get their best gas mileage around 50-55 mph, and efficiency drops off fast after that. According to the U.S. Department of Energy’s fuel-economy guidance, every 5 mph you drive over 50 is effectively like paying an extra chunk per gallon. Easing off the pedal is one of the cheapest fuel savings available.
Consider Going Electric or at Least Updating Your Fleet
Sometimes you can still do everything right with your maintenance etc., but you still can’t beat the cold, brutal drum beat of age. If your vehicle was made over 10 years ago (or less based on mileage), it would be very wise to look into replacing it soon.
Total Honesty: I am not a die-hard fan of going fully electric for every business. From an environmental perspective, hybrids and electrics carry real manufacturing and battery costs over the lifetime of the vehicle. And from a business perspective, battery replacement down the road can hit you financially in a way a traditional engine usually does not.
That said, the whole point of this article is that we are in a period of painfully high fuel costs. When gas sits at a four-year high, the short-term fuel savings of a hybrid or electric vehicle can outweigh those longer-term concerns, especially for high-mileage routes. A hybrid in particular is often the pragmatic middle ground: meaningfully better mileage without full dependence on charging infrastructure.
Either way, an aging fleet is a quiet money leak. A while back we had a service client go all in on the Ford Maverick, taking both routes — one hybrid, one traditional. Both produced fuel savings compared to the vehicles they replaced. The lesson was less “electric versus gas” and more “newer and right-sized beats old and tired.”
One important update: if you remember the federal EV tax credit, note that the federal clean-vehicle purchase credits for new and used EVs ended on September 30, 2025, so a 2026 purchase generally will not qualify for that particular break. What may still help a business: the federal home/depot charger credit (available for equipment placed in service through mid-2026 in eligible areas) and Section 179 or bonus depreciation on qualifying heavier business vehicles. The rules shift often, so confirm current eligibility with the IRS clean-vehicle guidance or your tax professional before counting on any credit.
You Need to Lose Weight, Literally
If you are a small business that often is running around with heavy loads, this also hinders your gas mileage. The heavier your car or truck, the fewer miles per gallon you will get.
Unfortunately, this can become a balancing act. The best way to tackle determining how much load garners the best efficiency is to begin to experiment. You’ll want to vary how much you carry at one time. While noting the overall gas mileage. With the other side of weight being the number of trips. It is highly unlikely that the savings from a large drop in load will counteract the added costs of a second trip.
This item has a lot to do with which vehicle you are using and if you are within normal operating parameters. Sounds silly, but how many of you have seen a local service truck drive by with its tail end a foot off the ground? Make sure that when you are shopping for your fleet (see above), you are aware of the specs needed to handle your load and stay efficient.
Outside the Obvious: Something that you might not have thought of in terms of reducing the in-service weight is to itemize each vehicle’s inventory. What we mean by this is to create a list of items that each vehicle has on board. You can go as refined as you’d like, but the more detailed the better.
Once you’ve completed your inventory, go through every item on the list and determine if you really need to be hauling that item around all day, every day. Remember that 20 lbs. specialized wrench that you use maybe once a year? Do you seriously need to be lugging that thing around the other 364 days?
Instead, house those items in a stationary inventory and then implement a check-out system. Not only will you reduce the everyday load of your vehicles, you’ll have stronger control over your assets.
Skip the In-Person and Focus on the Virtual
By now, the virtual meeting is simply part of how business works. Whatever your feelings about it, video calls have become a normal, accepted way to meet — and that is genuinely useful when fuel is expensive.
Capitalize on that by transitioning meetings to virtual as much as possible. Every meeting that does not require a drive is a meeting that costs you zero in fuel. Sales check-ins, vendor calls, internal syncs — a lot of these never truly needed a windshield.
Oh, and consider making all your positions remote capable as well. While this won’t have as much impact on your bottom line, it can save your employees their commute expenses. That alone is a boost to morale, but most of us (raises hand!) prefer to work outside in the “real” world as opposed to a cube farm. All around it’s a good move for any small business.
Speaking of Employees, Incentivize Them
If your business is of the sort that you must have employees on site (retail, food, etc.) then you might want to consider some incentives. This applies more to those businesses that choose (or are forced one way or another) to pay mileage to their employees.
You can develop an incentive that works for your business that attempts to persuade your employees to utilize alternative modes of transport. Just a spitball example here: perhaps you offer to pay every employee that bikes to work an extra $2 for that day. Before you react, know that that $2 represents a 3-mile commute by bike. There is a good chance that you’ll end up with a net savings depending on your commute situation.
Another example might be to incentivize public transport. Think about compensating them for the cost of the bus, train, etc. but a little on the top. If your average commute for your employees is anything over 5 miles, you’re highly likely to come out ahead.
One last idea. You could have rolling contests. Perhaps for the office staff you see who can drive the least every month, and then the winner gets a gift card or something. You’ll get the added benefit of the Public Relations you can milk out of that too. Or for your technicians, you can offer a similar contest for on-the-job travel. Reducing their use of company fuel while also potentially lowering the wear and tear on your company car.
Reducing Fuel Expenses is Crucial for Your Small Business
High fuel prices are a real drag on a small business budget, and right now they are about as high as they have been in years. But as this list shows, you are not powerless. Some of these moves are obvious and some are not, and the businesses that come out ahead are the ones willing to actually implement them instead of just nodding along. Stack a few of these together and the savings compound.
If you want to think bigger picture, fuel is really just one cost line in a business that has many. Our post on planning for sanity, not just sales, is a good companion read for building a business that can absorb shocks like this without knocking you off course.
Not sure where to start, or want help building a real cost-savings plan instead of guessing? Book your free consultation with Out of the Box Advisors, and let’s find the savings hiding in your business. Your success is our success.
Frequently Asked Questions
Why are gas prices so high right now?
As of mid-2026, the national average is above $4.50 a gallon, near a four-year high and up roughly 44% year over year. The main driver is overseas: conflict in the Middle East and disruption around the Strait of Hormuz, a chokepoint for a large share of global oil shipments, have tightened supply. When global oil supply gets squeezed, U.S. pump prices follow.
What is the fastest way for a small business to cut fuel costs?
Start with the moves that need no purchase: route optimization and clustering your stops. Simply reducing total miles driven can cut fuel spend by around 10%, and it costs nothing but a little planning. Pair that with gas price-comparison apps and rewards programs for quick, low-effort savings.
Does route optimization really save money?
Yes. As a working benchmark, implementing some form of route optimization typically reduces fuel expenses by roughly 10%. Many scheduling and work-order tools already include optimization features, so service businesses often have access to it without buying anything new.
Is switching to an electric vehicle still worth it without the federal tax credit?
It depends on your mileage and routes. The federal EV purchase credits for new and used vehicles ended September 30, 2025, so a 2026 purchase generally will not qualify. However, when fuel is at a four-year high, the fuel savings of a hybrid or EV on a high-mileage route can still make the math work. A hybrid is often the pragmatic middle ground. Check current incentives, including charger credits and Section 179 or bonus depreciation, with a tax professional.
How much does vehicle maintenance affect fuel economy?
More than most owners think. Something as small as an under-inflated tire or a skipped service quietly lowers your gas mileage every mile you drive. A formal maintenance policy with routine schedules and mileage triggers protects both your fuel budget and your vehicles.
Should I make my team remote to save on fuel?
Going remote or hybrid where the work allows it removes commute fuel costs entirely and tends to boost morale. Even without a full remote shift, moving routine meetings to video and incentivizing employees to bike, carpool, or use public transit can meaningfully reduce fuel spend for both the business and your team.