Business, Freight News, Logistics, Road


Costs not commitments drive fuel decisions, says report

[ October 13, 2026   //   ]

Rising operating costs, rather than net zero commitments, are now the primary driver of fleet fuel transition decisions for UK businesses, according to research by GXO Logistics.

The Future of Transport: The Net Zero Transition – the second in a three-part series that explores efficiency, sustainability and technology in UK transport – surveyed over 1,000 UK supply chain, transport and logistics decision makers. Some 63% said that rising fuel costs are accelerating their interest in alternative fuel vehicles but progress remains slow, with only 38% currently operating alternative fuel vehicles, despite 87% identifying emissions reduction as a key priority. 

While reducing emissions remains a priority, businesses are increasingly focused on securing commercial return. More than three-quarters said that demonstrating cost savings or operational efficiency were essential to unlocking investment in low-emission transport. 

High upfront vehicle costs, uncertainty over future technology choices and concerns around infrastructure continue to delay investment decisions, leaving many operators focused on efficiency improvements they can implement today. The research found that 43% are reducing part-loads, while 41% are cutting empty running, 41% are exploring fleet sharing and 39% are optimising routes – all up from the last survey in 2024.

Managing director, transport, GXO UK & Ireland, Carl Hanson, said: “Decarbonisation and commercial performance cannot be treated as competing priorities. The findings show that businesses need practical solutions that deliver efficiencies now while preparing their fleets for a range of future fuels. Better data, stronger visibility and more connected transport networks can reduce waste, cost and emissions today, while partners with the right expertise and scale can help organisations navigate complexity and move from ambition to action.” 

The research highlights the importance of starting the transition journey now. Through bespoke transport transformation programmes, GXO helps customers identify the right place to begin, using network analysis, phased implementation plans and funding options to create a practical path to net zero. Taking action early enables businesses to manage costs, control the pace of change and reduce the operational risk associated with fleet transformation. 

The findings underline the industry’s belief that no single technology will deliver the transition away from diesel. Seven in ten (70%) logistics leaders expect gas-powered fleets (LNG/CNG) to be a viable, affordable and operationally realistic option by 2028, followed closely by electric HGVs (68%), biofuels (64%) and hydrogen (62%). 

Although the transition is underway, the research also finds that there are still sizeable hurdles for businesses to cross. Only a quarter of businesses (25%) have already started investment planning for charging or refuelling infrastructure and less than a third (30%) have begun procurement planning around anticipated energy supply.  

Tags: