Vehicle technology specialist Runzheimer has launched a new fuel expense solution, intended to provide a fair and accurate mileage-based alternative to traditional fuel cards.

Incorporating the use of air conditioning, the gap between official mpg figures and real-world EQUA Index Mpg has risen to 29% on average.

Dubbed Equo Fuel, the solution is combined with the firm’s existing mileage capture app and is said to result in more accurate and efficient reimbursement of fuel expenses. 

Equo Fuel uses local fuel prices, combined with fleet vehicle miles per gallon information to calculate a geographically accurate cents-per-mile reimbursement rate for fuel expenses.

The Equo mobile app automatically captures miles driven and tags trips as ‘business’ or ‘personal” based on the employee’s work schedule. The recorded business mileage is then reimbursed based on fuel costs per mile, while taking into consideration the category of fleet vehicle driven, local fuel costs, and whether the employee drives in city traffic, rural areas, or mountainous roads. Rates are updated daily to provide pinpoint accuracy of fuel fluctuations.

The firm said the solution could see fleets realise fuel cost savings of 20%  while eliminating the administrative costs associated with issuing new cards for new hires and replacing lost cards.

It also brings driver benefits including simplifying end of-year tax calculations for personal use and fully automating the mileage logging process.

“By connecting this new solution to actual business miles, our clients will be able to reimburse their employees for the fuel actually used for business –  without the administrative hassle of dealing with fuel cards,” said Donna Koppensteiner, senior vice president of business development and marketing at Runzheimer.