FUEL FOR THOUGHT: DIESEL, HVO OR ELECTRIC – HOW DO THEY STACK UP?
Choosing the right fuel for your fleet is no longer just about price at the pump. It’s about long-term performance, cost stability and operational resilience.
More choice means more to consider
When diesel was the default option, the price charged by your fuel supplier was often the only factor you needed to calculate. Now, with diesel, HVO (hydrotreated vegetable oil) and electric all viable in different scenarios, the decision is more strategic.
It’s not just about cost per litre or cost per kWh – it’s about how your choice impacts maintenance, depreciation, uptime, compliance, and long-term predictability.
Key questions to ask
- What effect does the fuel type have on the engine or drive train, and how does that impact service intervals and parts replacement?
- How does each option influence residual value and long-term depreciation?
- How exposed are you to price volatility, geopolitical risk or policy change?
- What infrastructure investment or operational change is required?
Side-by-side comparison
Below is a summary of key advantages and considerations for each fuel type. For a customised assessment of your fleet’s specific duty cycles and operating profile, our team can model the numbers with you.
Adding up the total cost of ownership
Comparing fuel types in isolation only tells part of the story. Total cost of ownership (TCO) is shaped by a wider set of variables.
Modern telematics enable route optimisation, energy monitoring, improved driving behaviour, reduced idling, and more efficient braking – unlocking savings across diesel, HVO and electric fleets alike.
Other factors to consider include:
- Servicing frequency and downtime
- Emissions compliance and clean air zone exposure
- Fuel cards and administrative costs
- Residual value risk
- Infrastructure design and uptime optimisation for EV operations
The latest vehicle advancements – including fuel-efficient engines, hybrid systems and aerodynamic improvements – continue to enhance TCO performance across all fuel types.
Building in predictability
Cost stability varies by fuel type. In broad terms:
- Electricity typically offers the greatest long-term predictability
- HVO sits in the middle, influenced by feedstock supply and biofuel policy
- Diesel remains the most exposed to global commodity and geopolitical volatility
Financing structure also plays a critical role. Contract hire can smooth cash flow and bundle maintenance. Infrastructure planning – particularly for depot-based charging and smart energy management – is equally important in maximising uptime and protecting long-term operating efficiency.
When does the EV option make sense?
Electric vehicles often reach cost parity with diesel much sooner than many fleet managers expect, especially on high mileage, stop-start urban routes with predictable daily returns to base.
The Vertellus EV Discovery Programme, in partnership with Zenobē, provides data-led analysis and practical transition planning to help operators understand where electrification makes operational and financial sense.
For long-haul or high-load operations, high-efficiency diesel or HVO may remain commercially viable depending on duty cycle and infrastructure access.
No one-size-fits-all answer
There is no universal solution. Many mixed fleets will continue to operate a combination of diesel, HVO and electric depending on route profile, payload, range requirement and infrastructure access.
They key is to make a decision based on real-world data rather than assumptions.
How Vertellus can help
We work alongside national and regional operators managing mixed HGV, MHD, and LCV fleets every day. By combining our fleet expertise with the strength of Renault Trucks UK and its nationwide dealer network, we take a partnership-led approach.
That means modelling real duty cycles, analysing energy use, assessing infrastructure requirements and building transition roadmaps that balance cost, risk and operational performance – so you can move forward with clarity and confidence.