Petrol increasingly economical for fleets
Alphabet Belgium's annual study into the use of petrol, diesel and electric as fuel shows that petrol increasingly is the preferable solution for fleet cars.
Every year, the lease company analyses vehicle price, tax, VAT, fuel use and residual value to determine which motorisation is best. Whereas diesel was the clear winner in the past, petrol now is increasingly competitive, even for higher mileages.
In the compact segment (e.g. Citroën C1, Opel Adam), petrol is clearly advantageous for annual mileage up to 20,000 km and a contract duration of 60 months. At a lower runtime, petrol cars are the better choice even at annual mileages of up to 35,000 km – unlike previously. CNG-powered vehicles have a lower TCO, and are a good alternative. Electric vehicles are more expensive, thus have a higher TCO, and are less preferable.
In the economy segment (e.g. Ford Fiesta, Renault Captur - pictured), the inflexion point between petrol and diesel has shifted significantly. For contracts of up to 60 months, anyone driving up to 25,000 km p.a. is better off with petrol. For contracts of up to 24 months, that increases to 30,000 km p.a. If sustainability is important to you, hybrids and full-electrics are valid alternatives.
Also in the business (e.g. Audi A3, Volvo V40) and business+ (Audi A4, VW Passat) segment, petrol cars are becoming more prominent. Last year, diesel was the preferred fuel for annual mileages from 20,000-25,000 km, now that inflection point has shifted to 25,000-30,000 km. Again, hybrids and electrics are economical alternatives, thanks in part to tax benefits.
Diesel generally remains the preferred option in the executive (e.g. Volvo XC60, BMW 5 Series) and luxury (e.g. Audi A7, Tesla Model S) segments, with some petrol cars having a slightly better TCO in case of annual mileages under 10,000 km.
The shift towards petrol has several reasons: petrol engines are cheaper, both to buy and maintain; fuel consumption has improved over recent years; and the increasing desirability of petrol cars is increasing their residual value.
Image: public domain
