This paper handles the problem of controlling speed limits on freeways in a connected traffic environment to reduce traffic congestion and improve both the operational and environmental performance of the road network. In order to achieve this objective, we present a Variable Speed Limit (VSL) system that utilizes fuzzy logic, which adjusts the speed limits that connected vehicles must comply with by leveraging traffic data such as vehicle flow, occupancy, and speed obtained from loop detectors installed along the road. To evaluate the effectiveness of the proposed Fuzzy-based VSL system and its potential benefits compared to the conventional rule-based VSL system in terms of traffic congestion and environmental impact, we conducted a simulation analysis using the microscopic traffic simulator, VISSIM. Specifically, three simulation scenarios are taken into account: i) no VSL, where the VSL system is not enabled; ii) Rule-based VSL system, where a typical a decision tree-based system is considered; iii) Fuzzy-based VSL system, where the herein proposed approach is appraised. The results demonstrate that the proposed approach enhances road efficiency by decreasing speed variation, increasing average speed and vehicle volume, and reducing fuel consumption.