Live Markets, Charts & Financial News

Treasury eyes automation, fleet tracking in fuel cost cut push

2

Government-owned vehicles will only be refueled using automated tag systems and will remain monitored through digital tracking devices in changes proposed by National Treasury aimed at reducing operating costs.

The proposal will see the centralization and automation of fuel programs for all government fleets to reduce waste.

“By tracking and monitoring consumption using a computerized fuel card system, the government can obtain accurate and up-to-date data. The computerized fuel monitoring system allows all vehicle users to refuel their vehicles using a key containing a computer chip that is identified by the vehicle identification number linked to the users’ individual PIN “Treasury Minister John Mbadi.

“Fuel can be dispensed based on a limited amount of fuel specified for each key, or an unlimited fuel ration can be dispensed. He added that administrative keys are allocated to drivers assigned to specific vehicles along with supervisors, which act as master keys that enable them to bypass all vehicles.

The Treasury Department said computerized chips will track refueling schedules and quantities for each vehicle.

“As information about fuel distribution accumulates in the pumping station computer, the central server connects to the computers several times each day and collects all the accumulated information. The software tracks the date and time of refueling of each vehicle and records the type of fuel, liters, odometer readings, kilometers per liter and total cost,” Mbadi said. Fuel.

The information will additionally be used to monitor budgeted fuel consumption versus actual fuel consumption to help determine expenditure allocation, the CS said.

Already, the government is trialling an automated system for vehicle location, fuel registration and tracking with the National Police Service among other agencies, as it has its eyes on rolling out the system to all its vehicles.

As part of proposals to cut the transport budget, the Treasury also wants Cabinet ministers and governors to be allocated only two official vehicles while board members of parastatals will use private cars and seek compensation in the radical changes proposed by the National Treasury aimed at curbing runaway transport. Costs.

The proposals would also see all senior officials in both national and provincial governments sharing the vehicles, a major shift from the current extravagance where officers have access to multiple vehicles.

The existing transportation system has been abused, resulting in costs rising to Sh14.3 billion as of 2023 from Sh8.6 billion in 2021, the Treasury said.

“The important thing to note here is that the government’s transport provision bill will continue to rise if appropriate policy interventions are not implemented,” Mbadi said.

In the proposal, one car is allocated to each chief secretary, head of a parastatal and chief executive of independent offices and committees.

“One vehicle will be allocated to each government cooperation chief. The work of senior cadre officers will be facilitated from a range of vehicles. Independent officer commissioners and members of parastatals will be asked to use private vehicles and seek payment,” the Treasury said.

Board members of parastatals will demand between Sh26 and Sh58 per kilometre, depending on the engine of the private vehicle used.

Cars with engine capacity from 1,500cc to 1,800cc attract the highest reimbursement rates at Sh58 while the rate for those with capacity between 850cc to 1,050cc is Sh26 per kilometre.

At the county level, one vehicle is allocated to each Lieutenant Governor, County Executive Committee Member and Chief of Staff.

Comments are closed, but trackbacks and pingbacks are open.