Logistics & Supply Chain
Basic

Fuel Cost Per Kilometre

Fuel spend for each kilometre from fuel price and economy.

Formula

Ckm=PfuelEC_{km} = \frac{P_{fuel}}{E}

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Variables

C_{km}Cost per km
P_{fuel}Fuel price per litre
EEconomy (km per litre)

Example

$1.60/L, 8 km/L: C_km = $0.20

How it works

This formula tells you how much fuel money is spent to move a vehicle for 1 kilometre. It works by dividing the price of one litre of fuel by the number of kilometres that litre can cover, so the litres cancel out and you are left with a cost per kilometre. A lower fuel price or better fuel economy both reduce the cost per km.

When to use it

Use this when comparing the running cost of different vehicles, planning delivery routes, or estimating transport expenses for a trip. It is especially useful in logistics, fleet management, and budgeting for vehicles that travel regularly.

Worked example, step by step

Fuel price = $1.80 per litre Economy = 12 km per litre C_km = P_fuel / E C_km = 1.80 / 12 C_km = 0.15 So the fuel cost per kilometre is $0.15/km.

Common mistakes to avoid

  • Putting the economy in litres per km instead of km per litre without converting it first
  • Multiplying fuel price by economy instead of dividing
  • Forgetting that the answer is a cost per kilometre, not a total trip cost

Did You Know?

Fuel is often 30-40% of a trucking operation's total running cost.

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Reviewed & maintained by the FormulaWon editorial teamLast reviewed September 2026