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How technology has saved costs at the pump

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Vehicle fuel choice needs a balanced approach - diesel still important says Fleet Alliance

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26 January 2015

Business woman at fuel pump
According to Glass’s we might be better off today than 20 years ago

How technology compares on fuel costs

Then…
Ford Escort 1.4 petrol – 480 miles costs 7.24p per mile @ £2.46 a gallon

Now…
Ford Focus 1.5 diesel – 480 miles costs 6.97p per mile @  £5.17 a gallon

THE current trend for falling pump prices set us thinking about an interesting question at Glass’s:

“How much more does fuel cost today for a company car driver compared to 20 years ago?”

Back in 1995, the most popular family car was the Ford Escort, then in recently released Mark 6 form. At the time, petrol was overwhelmingly the fuel of choice among car buyers and we opted for the 1.4 litre 75hp engine for this exercise, which delivered 34mpg.

The cost of petrol was around £2.46 a gallon or 54.2 pence per litre, with prices having increased rapidly from a relatively low point in the late 1980s following the first Iraq War, then fast growing world demand and increasing tax rates.

To do a 480 mile round business trip would use just over 14 gallons or 64 litres of petrol at an overall cost of £34.73 or 7.24 pence per mile.

Now let’s fast forward 20 years past the massive fuel protests of 2000, when petrol was 80 pence per litre, another Iraq War and global recession through to January 2015.

Back in 1995, the most popular family car was the Ford Escort, then in recently released Mark 6 form

Currently, diesel – the most common fuel for company car drivers – is £5.17 a gallon and the Escort has been replaced by the Ford Focus. Our choice of engine is the new 1.5TDCi with an output of 95hp and fuel economy of 74.3mpg.

Covering the same 480 miles in the Focus, this time we would use just under six and half gallons of diesel at a total of £33.44 or 6.97p per mile. Using less fuel, the cost is almost £1.30 cheaper even without adjusting for inflation.

So despite the huge rises in fuel prices over the last two decades the cost can be offset by technological advances that deliver better fuel economy.

It is interesting to ponder what would be the result if we tried the same exercise in 20 years in a hydrogen fuel cell-powered car.

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