PREPARING NEW ZEALAND FLEETS FOR 2027: COST CONTROL AND COMPLIANCE

Most New Zealand fleet operators already know fuel is one of their highest operating costs. The challenge is that many still do not know exactly where that cost is being lost. Usually, it is not through obvious misuse or major operational failures, but through small inefficiencies such as excessive idling or inefficient routing that compound across the fleet every day. Combined with an increasing pressure for accuracy around compliance and reporting, the fleet operations might become unsustainable. To help businesses address cost and compliance challenges, Teltonika hosted a panel discussion with one of the key business partners in the region Argus Tracking.

LACK OF OPERATIONAL VISIBILITY

According to the research agency Berg insight, telematics adoption rate in Australia and New Zealand reached only 25% in 2024. Kes Grauslys, CEO at Teltonika Australia, explains that New Zealand lacked the regulatory push that exists in other regions.

"The European Union and USA have different legislation for commercial fleet driving hours and mandating telematics implementation. Meantime in both Australia and New Zealand, we are still noticing tenders where government bodies never had a telematics solution before. We are talking not only about small fleets up to 50 vehicles, but we are also talking about fleets over 1000 vehicles, including those that go to rural regional locations unsupervised, without visibility. The fleet of NSW National Parks, is a good example and there are plenty more."

However, even when telematics devices are installed and fuel is monitored, many still lack clear operational visibility, as fleet owners don’t know how exactly the fuel is being consumed, where inefficiencies sit, and which costs can realistically be controlled.

Argus Tracking, a New Zealand fleet management software provider using Teltonika’s telematics hardware across its solutions, provided a few staggering examples, like a driver who was refilling his fishing boat each weekend using his employer’s fuel, the loss costing several thousand dollars for the company. Another case is an employee going to a golf course during working hours, leading to 25 days of lost productivity for the company across the year.

In case the operators cannot see the fuel consumption by vehicle, route, and asset, or depending on driver behaviour, they are not actively managing fuel performance, but just reacting to it. In fact, the industry benchmark for such preventable costs is from 20 to 40% of the fuel budget of an average fleet. With todays  fuel prices inefficiencies like these become unacceptable. Due to the closure of the Strait of Hormuz, the price of fuel grew from 2.3 to 3.62 New Zealand dollars per litre of petrol or 1,5 times since the beginning of 2026.

For many New Zealand fleet owners, operational complexity is also increasing due to multiple reasons. Dispersed field teams, mixed diesel and electric vehicles, higher customer expectations, and growing administrative requirements create immense pressure, adding up to a rising fuel cost. The result is that operational inefficiencies that once sat quietly in the background are now becoming visible in the numbers.

ERUC: OPERATIONAL SHIFT DUE TO NEW REGULATION

Road user charges (or RUC) in New Zealand are the charges payable by the owners of heavy vehicles. In 2026, the regulators passed the new legislation aiming to modernise existing systems and introduce electronic road charge payment for light vehicles (or eRUC). The new system will start operating in 2027, and this upgrade is often discussed in the industry as a compliance or administrative change. In reality, it reflects a broader shift toward operational precision. What will change for fleet owners after eRUC adoption?

To follow eRUC legislation, fleet systems should move from manual to automated logging, from periodic to continuous reporting, and from estimations to real-time operational data. For fleets still relying on spreadsheets, manual odometer reconciliation, or fragmented reporting processes, this shift matters. It might seem like a new compliance burden at first glance, however, in reality, it is an opportunity to address both compliance and general fleet inefficiency.

Argus Tracking team states that around 70% of the fleet owners they speak with are now enquiring about RUC digitisation, while fuel visibility and operational cost control are becoming much bigger priorities across the wider market. As fleets scale, even small reporting inaccuracies or administrative delays create unnecessary operational friction. It pushes more businesses to look for ways to reduce manual administration while gaining clearer insight into fuel spend, vehicle activity, and operational inefficiencies.

ACTIONABLE DATA IS KEY FOR SUCCESS

Telematics serves as a solution for compliance and operational inefficiency issues. However, just implementing any tracker is not enough. In fact, according to Escalent’s Fleet Advisory Hub, there is a disconnect between the promise of what telematics can do and the outcomes fleet owners experience. The study conducted among nearly 12,000 companies shows that only 45% of responders have a telematics solution that fully meets their needs.

Argus Tracking team experience firsthand that the fleet owners do not ask for more data, they need actionable insights. Telematics becomes much more powerful when it is tailored to a fleet’s needs and can be integrated with other services and types of data. Integration with fuel card providers is a good example. It allows connecting the fuel purchased with what was consumed by the vehicle and the data on driver performance. It helps to see how the fuel was used and why. According to Argus Tracking, the way forward is the integration between systems and the creation of a fleet management ecosystem.

Another example of the actionable data is the driver scoring based on telematics parameters like speeding, braking, acceleration and cornering. Josha Runde, head of sales for Australia at Teltonika explains: “We have seen several fleet operators offer monthly bonuses for the top-ranked drivers. The reason is simple: the fleets are saving an additional 10 to 20% on their operation costs just because a driver has really taken the time to try and be better on the road. In this scenario, everyone wins.”

Increasing fleet efficiency means that the same business outcomes are being achieved with fewer resources. Sometimes it means not growing or even reducing the number of vehicles in the fleet. It might seem to go against the interests of hardware and software providers, who usually base their billing on the number of vehicles tracked. However, Letitia Gozman, regional marketing manager, strongly disagrees: “If that is going to be the best operational outcome for your partner, we are all in on that. At the end of the day, it is about creating value for our customers, not just selling trackers”.

WHAT NEW ZEALAND FLEETS SHOULD PRIORITISE NOW?

It is important not just to define a good fleet management strategy but also implement it on time. Some of the fleets already learnt it the hard way during a recent 3G shutdown in New Zealand. Those who haven’t upgraded their telematics systems in advance experienced a sudden drop in fleet visibility and needed to act quickly to restore reliable fleet management. That’s why it’s crucial to start preparing for the operational shift now. What steps should the fleet owners take and when?

START ACTING NOW: FUEL VISIBILITY AND DRIVER COACHING.

As the fuel prices have already risen 1.5 times over the last 6 months, there is no time to waste in curbing the fuel expenses. Detecting unnecessary fuel usage and improving driver behaviour allow to significantly cut operational costs in the short term.

3- 6 MONTHS TIMELINE: ERUC READINESS ASSESSMENT.

The new regulation comes into force in 2027, however, it is important to assess telematics readiness to eRUC in advance. It will allow to avoid last minute tracker installation or platform changes that can come at a higher cost than regular telematics maintenance. 

6 – 12 MONTHS TIMELINE: DATA INTEGRATION STRATEGY. 

According to Escalent’s Fleet Advisory Hub survey, 89% of fleet professionals highlight the importance of one connected platform for managing telematics data across the fleet. To improve efficiency in the long run, the integration strategy should be defined and gradually implemented to assure smooth transition and adoption by everyone in the team, from managers to drivers.

To sum it up, both Teltonika and Argus Tracking notice a shift in the way the telematics data is being used for decision-making. “Across Europe, telematics is increasingly being used for fuel optimisation, predictive maintenance, compliance automation, and driver performance management. Australia and the US are moving in the same direction as operating costs continue to rise. New Zealand is entering that same transition now,” says Kes Grauslys, CEO of Teltonika Australia.

Dive deeper into this topic and find a solution for your business by reading our use case: Efficient Fuel Management Solutions.