Fuel consumption is one of the major engineering challenges in a vehicle. Being directly connected with consumer needs of saving fuel as well as the brand following emissions standards. It is extremely useful because it tends to be utilised as a direct measure of fuel costs for a business. Making the vehicle more efficient will reduce these costs.

Knowing the fuel use and fuel consumption values is useful as it allows for cost calculation and route planning to maintain a balanced and measured refuelling schedule.

Fuel Consumption can be measured and reported back to the company or respective individual through the vehicle telematics device. It reports on the amount of fuel used in driving a vehicle a certain distance. It also measures the fuel consumption rate to the quoted figures from the manufacturer and can be compared to give the real-world fuel efficiency of the car.

Through telematics, fuel consumption information will help fleet managers maintain a budget, maintain a schedule for filling the tank and keep a balanced fuel ratio. Coordination and comparing drivers are possible too. With different drivers having higher consumption, it can help avoid the risk of running out of fuel during a shift.

Fuel consumption is used to calculate the CAFE (Corporate Average Fuel Economy) standard to compute the fleet average fuel economy for city and highway driving. It also gives an indication of fuel consumption for long routes, short routes and against each fleet vehicle.

Fuel consumption is an effective measure of calculating how much fuel has been used and how much has been saved in a certain period. If a vehicle is changed from one with higher fuel consumption to that with lower fuel consumption, fleet management can measure the amount of fuel saved.