IMPACT OF FUEL ABUSES ON THE ECONOMIC SITUATION OF TRANSPORT COMPANIES

Abstract

The specific nature of the transport process requires use of significant amount of current assets – fuels, lubricants, spare parts, etc., which have substantial value. Cost management requires proper costs determination, monitoring and control. The fuel abuse is one of the greatest problems in the transport companies. Almost every manager has faced this problem and adopted different anti-abuse measures accordingly. In value terms the expenditures in the transport company are the total amount of the inputs and the paid remuneration. The transport company management awareness of the mechanism of using current tangible assets plays a key role in reducing the production costs and lowering the cost price of the transport service. A particular important element in reducing prime cost is the availability of complete and reliable information about the fleet, routes of running, actual fuel consumption, etc. The information given by drivers, supervisors and mechanics is often contradictive and inadequate but it is not possible to make proper management decisions without objective information. Therefore, one of the priorities of the company management is to find the volume of actual fuel consumption and misuse of fuel. The paper discusses different approaches influencing the control of fuel consumption. Reducing fuel abuse is one of the options to reduce expenditures and cost price of the transport companies. The cost price of transport significantly affects the amount of the profit and profitability of the transport company.