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You have a supplier statement, a stack of half-filled logbooks and a BAS coming up. Someone asks where 2,000 litres went last quarter, and nobody can say. Fuel reconciliation for contractors is how you answer that question. It means matching the litres you bought to the litres you dispensed, then finding the gap. This guide walks through it in five steps, using records you already have.
The short version
- A delivery docket shows what arrived. It does not show where the fuel went.
- Fuel reconciliation for contractors is five steps: buy, dip, add up, compare, explain.
- The gap you find is where missed claims, free fuel and lost litres hide.
Why fuel reconciliation for contractors matters now
Diesel is the biggest energy input in civil work. The Civil Contractors Federation says fuel can make up to 12 per cent of project input costs. When the price moves, the margin on a lump-sum job moves with it. Either way, the litres matter.
Dave White, our founder, put it plainly when he spoke to Australasian Drilling for a feature in its October-November 2026 issue. "Labour is measured down to the minute and the dollar, but when it comes to diesel, a lot of businesses have little more than a fuel statement."
The feature was about drilling. The same problem sits on civil sites. Fuel moves from a bulk delivery into a tank, then a service truck, then a machine. If one step goes unrecorded, you cannot prove what was used, where it was used or who should pay for it.
How fuel reconciliation for contractors works in five steps
Pick the last complete quarter. Then work through these steps.
| Step | What you do | Where the numbers come from |
|---|---|---|
| 1. Pick the period | Use the last full quarter, so it lines up with your BAS. | Your BAS dates |
| 2. Total litres bought | Add up every delivery and every card or bowser purchase. | Supplier invoices, fuel card statements |
| 3. Check diesel stock | Dip each tank at the start and the end of the period. | Tank dips, tank gauges |
| 4. Add up dispenses | Total the litres recorded against each machine, job or tank. | Fuel dispense records, logbooks, app records |
| 5. Find and explain the gap | Compare. Then sort the gap into causes. | Everything above |
The sum is simple. Litres bought, plus opening stock, minus closing stock, is the litres that should have gone out. Compare that with the litres you recorded going out. The difference is fuel you cannot explain.
Then sort the gap. Check whether fuel went into hired plant or a client's machine. Check whether a transfer between tanks was counted as use. Check whether trucks that run on public roads and on site were classed correctly. Check for plain recording errors. What is left over is the number to chase.
A worked example
These figures are an example, not a customer result. They show why the record matters.
A contractor takes a 30,000 L delivery. The records show:
| Where the fuel went | Litres | Rate (c/L) | Credit |
|---|---|---|---|
| Off-road plant (excavators, graders, generators) | 24,000 | 53.7 | $12,888 |
| Heavy vehicles on public roads | 4,000 | 21.3 | $852 |
| Unexplained | 2,000 | none | $0 |
| Total supported by records | 30,000 | $13,740 |
Now picture the lazy version. Someone says, "We bought 30,000 litres, so that is 30,000 litres off-road." At 53.7 c/L that is a $16,110 claim. It is $2,370 more than the records support. That is an overclaim.
Dave heard this exact mistake during his interview with Australasian Drilling. "A company might say, 'We bought 30,000 litres, so that is 30,000 litres of off-road fuel,' but the delivery itself does not show where that fuel was ultimately used."
The rates in the example apply to fuel acquired from 3 August 2026. The 21.3 c/L rate is for heavy vehicles over 4.5 tonnes GVM on public roads. Check the ATO fuel tax credit rates before you lodge. Eligibility depends on your fuel, vehicle and activity, so talk to your accountant. Rates last checked 26 October 2026.
Why a fuel logbook and fuel cards do not close the gap
A fuel logbook feels safe. Dave does not think so. "The logbook can actually become part of the problem," he said. "Someone can write that 2,000 litres went into a generator, but without an independent record it can be difficult to challenge where all of that fuel really went."
Entries get missed when crews are busy, the weather is bad or the fill is at night. Then someone in the office spends a Friday afternoon reading handwriting. Our post on paper fuel logbooks goes through where they fail.
Fuel cards have their own limit. They show where fuel was bought. They do not show whether it went into a registered truck or a portable pod.
What a clean record can recover
One civil contractor Dave described to Australasian Drilling reviewed several years of data and recovered about $300,000, after installing systems costing roughly $16,000 to $18,000. That is one contractor and not a typical result. The figures are Dave's estimates, not a promise of what you will get.
Most of the gain comes from three places. You claim the credits you are owed. You stop fuel leaving as free fuel. You stop paying someone to retype logbooks.
Good fuel tax credit records also protect you. Keep them for five years. Paper or electronic is fine, and the claim window is four years. If you claim under $10,000 a year, a simplified method is available.
Where Fuellox fits
You can start the five steps today with invoices, dips and logbooks. The trouble is keeping the records clean after that.
With Fuellox, the operator scans the machine's QR code in the app, fills up, and the record saves. It captures who, which machine, how many litres, the time and the GPS location. It works over Bluetooth, with no SIM and no fobs. Fills save on the phone with no signal and sync once the phone has coverage. Where pump control is fitted, the pump unlocks after the scan. Most units self-install in under an hour and suit tanks from 200 L.
Good fuel reconciliation for contractors depends on step 4, and Fuellox gives you the dispense records for it without the Friday afternoon. The same records feed your fuel job costing, so the diesel lands on the right job. Our civil construction page shows how contractors use it.
If you use under 10,000 L a month and your problem is records, not security, ask us about Fuellox Logbook instead of the hardware.
Next step
Do fuel reconciliation for contractors on last quarter first. It costs you an afternoon. If the gap is bigger than you expected, talk to us.
Want the bigger picture on diesel spend first? Read our guide to diesel costs in civil construction.
Frequently asked questions
What is fuel reconciliation?
Fuel reconciliation matches the litres you bought to the litres you dispensed, after adjusting for tank stock at the start and end of a period. The gap is fuel you cannot explain. Finding it can reveal missed claims, unrecorded transfers, fuel given to other plant, recording errors and theft.
How often should a contractor reconcile fuel?
Do it at least every quarter, so it lines up with your BAS. Sites with several tanks or a lot of hired plant should do it monthly. A short, regular check finds a problem while the records are still fresh and the people involved still remember.
How long do I keep fuel tax credit records?
Keep fuel tax credit records for five years. Paper or electronic records are both fine. The claim window is four years. If you claim under $10,000 a year, a simplified method is available. Check the ATO guidance for your situation, or ask your accountant.
Does a delivery docket prove off-road use?
No. A docket shows how many litres arrived at your tank. It does not show which machine used the fuel, or whether the fuel went into a truck on a public road. You need a record of each dispense to support the split between on-road and off-road use.
Do I need new hardware to start reconciling fuel?
No. Your first reconciliation needs only supplier invoices, tank dips and your existing logs. Hardware helps once you want the records kept clean every day, because it captures each dispense at the pump instead of relying on someone to write it down later.
Dave White, founder of Fuellox. Dave has worked in the fuel industry for more than 25 years.
