Fuel Bonuses That Actually Work

Fuel costs are one of the biggest line items for any fleet. It makes sense that most fleets try to influence it with incentives tied to MPG or in-network fueling. On paper, it seems straightforward—but getting it to work at scale is a challenge.

Too often, fuel bonus programs are disconnected from what drivers can realistically control behind the wheel. When bonuses don’t feel achievable or fair, the very behaviors they’re meant to encourage disappear.

What’s Missing From Fuel Bonuses

For a fuel incentive to be effective, drivers need three things:

  1. A sense that it’s fair and achievable for them personally
  2. Regular coaching and feedback on how to meet and exceed targets
  3. Motivation - ideally driven by both competition and reward

The right tactics vary depending on the specifics of your fleet, but here are three proven structures:

1. Flat MPG Targets (for uniform fleets)

If your fleet has a consistent profile, similar makes, models, and age, a flat MPG target is often effective.

Run a quick analysis using telematics data to check for consistency across your fleet. Identify a driver who regularly rotates between trucks, if that driver can consistently hit similar MPG numbers, it’s a strong indicator your fleet profile is uniform enough for a flat target to be fair.

Then introduce a simple two-tier reward structure:

  • Baseline target (e.g., 8.2 MPG): $0.01/mile bonus
  • High performers (e.g., 8.5 MPG): $0.02/mile bonus

Remember to always adjust for seasonal impacts and APU availability, especially if APU use isn’t standardized across the fleet.

2. Cohort-Based Targets (for mixed fleets)

Many fleets today are extending asset lifecycles due to tough freight markets, moving from 3-year to 4- or 5-year replacement cycles. This introduces wide variance in fuel efficiency.

Cohort targeting is the best solution here. Group drivers by factors like tractor make/year or mileage band, where similar MPG performance is expected. Instead of setting fixed MPG targets, reward the top X% in each group.

This approach:

  • Levels the playing field
  • Keeps high performers engaged
  • Allows for dynamic, self-balancing competition

It may require some initial setup, but once in place, it runs with minimal admin.

3. Lead Indicator Rewards (for slip-seat fleets)

In fleets where drivers change trucks frequently, such as slip-seat operations, it’s nearly impossible to set fair MPG goals.

Instead, reward the inputs that drive efficiency:

  • Idle time
  • RPM control
  • Harsh acceleration/braking
  • Cruise control use

These indicators are consistently measurable and within a driver’s control, regardless of the truck they're in.

In Summary

The most effective fuel bonus programs do three things: they focus on what drivers can control, make the path to success clear, and build trust through consistency.

Flat targets work when fleet equipment is uniform. Cohorts work when it’s not. And when drivers change trucks too often for either model to be fair, focus on the inputs: idle time, RPM, and driving habits.

Whatever method you choose, the key is clarity:

  • Give drivers performance snapshots they understand
  • Show them what they can influence
  • Keep communication steady and transparent

Programs that reward effort and show progress get buy-in. Programs that confuse or punish the wrong behaviors lose it.