*First Ireland Fleet & Mobility Index finds 47% significantly impacted as firms face continued uncertainty over fuel prices and taxation
Nine in ten Irish businesses say fuel costs are influencing decisions about their company cars and vans as firms enter a critical winter budgeting period facing continued uncertainty over the cost of keeping vehicles on the road.
The findings are revealed today in Drivalia’s Ireland Fleet & Mobility Index, the first dedicated Ireland-wide fleet and business mobility research programme from Drivalia, one of Ireland’s leading leasing companies. Created as a new benchmark for Irish business mobility, the Index will track how businesses use, fund and manage company vehicles and how their priorities change over time. It examines the key pressures affecting organisations that depend on company cars and commercial vehicles, including fuel and operating costs, insurance, vehicle management, funding, technology and electrification.
Research conducted by iReach among 200 Irish organisations operating company cars and vans found that 91% say fuel costs are influencing their vehicle decisions, with 47% reporting a significant impact. More than half,52%, identify rising fuel costs and efficiency pressures among their biggest vehicle-management challenges, while40% cite managing costs and keeping expenditure under control.
The findings come as businesses face renewed uncertainty over fuel costs heading into the final months of the year. AA Ireland’s September analysis puts petrol at an average €1.87 per litre and diesel at €1.94, following increases in August.
Businesses also face uncertainty over fuel taxation. Excise increases originally due in September and October were deferred, with reduced rates remaining in place until the end of October. Under the current Government timetable, restoration is scheduled to restart from 1 November, with further stages in December, January and February. The temporary reduction in the NORA levy is also currently due to end from November. The timetable comes just weeks after Budget 2027 on 6 October, with Government sources indicating that ministers intend to remain responsive to elevated oil prices.
But the Index shows that pressure on businesses extends well beyond prices at the pump.
While 85% of businesses say they are confident their organisation manages its vehicles efficiently, 83% report that vehicle management takes at least two hours every month away from core business priorities. Almost three in ten, 29%, spend more than 20 hours each month managing company vehicles.
Insurance represents another significant pressure point. Almost four in five businesses, 79%, have experienced at least one issue with an insurance provider. High premiums or hidden costs are the most frequently cited concern, while 20% report slow or complex claims processes. The broader picture is one of businesses having to manage a growing combination of fuel volatility, insurance costs, administration and operational complexity simply to keep essential company vehicles on the road.
The Index also shows that many businesses remain at an early stage of electrification. On average, just 18% of company vehicles are currently electrified, while almost one quarter, 23%, of businesses have no electrified vehicles at all. A lack of charging infrastructure is cited as a barrier by 36%, while 34% point to the high upfront cost of electric vehicles and 25% cite a lack of internal EV expertise or knowledge.
Businesses also identified areas where greater support could help accelerate the transition. More than a third, 35%, say support for installing charging infrastructure at workplaces or depots would be an effective Government measure to encourage EV adoption.
Almost one third of businesses, 31%, say direct financial incentives or grants would encourage greater EV adoption, while a similar proportion, 31.5%, point to greater investment in charging infrastructure across Ireland.
The findings suggest that supporting business and commercial fleets could be an important part of Ireland’s transition to electric mobility. Unlike an individual consumer vehicle decision, fleet investment has the potential to move multiple cars and commercial vehicles towards electrification at the same time.
Olivier Mantoulan, Managing Director, Drivalia Ireland, said: “Fuel prices have brought the cost of keeping vehicles on the road sharply into focus for Irish businesses, but the Index shows that cost is only part of a wider challenge. Company cars and commercial vehicles are essential working assets, and businesses are also managing insurance, administration, downtime and the practical realities of electrification.
“If Ireland is to accelerate EV adoption, business fleets need to be central to that conversation. One fleet decision can affect five, 20 or 100 vehicles, so the potential impact is significant. The transition needs to work operationally as well as environmentally, with the right charging infrastructure, predictable costs and flexible funding options in place.”