Bunker Fuel vs Fuel Cards
Originally published on October 15, 2020
Keeping company vehicles fuelled and on the road throughout the year is a crucial part of running an efficient business fleet and there are many different options available to a fleet manager. The two most popular and effective methods are either fuel cards or fuel bunkering. But every company is different, so which option is best for your business? We compare the benefits of both options to help you make the decision that will benefit your business the most.
Bunker fuel meaning
When we say bunker fuel, we are referring to bulk fuel that has been purchased by a company for their own fleet’s use. Generally speaking, your company will store and dispense the fuel itself and have access to refills from varying commercial sites, depending on your bunker fuel supplier. The term originated from the fuel being poured into a ship’s bunker to power its engine.
For example, Rix Petroleum provides you with your own refuelling system to store and dispense your fuel safely on your site and purchase fuel refills at commercial rates. In addition, Rix Heating Services tank specialists offer a free, no-obligation survey to ensure the correct fuel tank is fitted, from 1,000-litre capacities upwards to industrial-scale bespoke installations.
Types of Bunker Fuel
The types of bunker fuel that can be provided are completely different from each fuel supplier. Diesel is the most popular fuel as it is used by most fleets and for larger vehicles in particular, however other specialist fuels can also be available such as GasOil Plus for diesel tractors and many other varying types, so be sure to do your research before committing to a supplier.
Bunker Fuel Purchase Benefits:
1. One-off system set up cost
Pay an initial setup cost for your fuelling system, enabling longer-term savings.
2. Fixed commercial rates
Bunker fuel prices can be very reasonable as bunker fuel is purchased at fixed commercial rates, avoiding any bad surprises from fluctuating fuel prices.
3. No added fees
Manage your fuelling consumption from start to finish and avoid admin fees.
Fuel cards are a quick and convenient way for businesses to pay for fuel bought at roadside fuel stations. Used similarly to a credit card, they enable your drivers to refuel their business vehicle whilst on the road, and allow you to monitor the spending details and pay for the fuel in one payment.
Fuel Card Benefits:
1. The ability to easily monitor fuel
Most fuel card suppliers will provide you with monthly reports to help you better manage your fuel consumption.
2. More control over purchases
You can decide, manage and adapt your fuel cards to be used for specific fuels (petrol or diesel) or other purchases, depending on changes and new introductions into the business.
3. Save time on administration
As an example, Fuelmate will send you a single HMRC compliant invoice, reducing the time spent on collecting receipts, sorting through invoices and collating business mileage.
Bunker Fuel vs Fuel Card Prices
The fluctuating cost of petrol, diesel or other fuels is a common occurrence which can have an important impact on your business’s fuel expenditure. A variety of factors can affect the price you pay for your fuel, such as the price of crude oil, gas shortages or alternative fuel sources and new types of vehicles becoming available on the market.
Choosing the right fuelling option based on the number of vehicles you operate, geography your business covers and your monthly fuel expenditure could lead to saving your business money and valuable time. Therefore, ultimately, your fuelling decisions should be based on the benefits that align with your company needs most accurately at the time of purchase.
If you are interested in finding out more about fuel cards and the specific benefits they hold for both businesses and employees alike, then please contact us so one of our friendly experts can best advise you on which fuels cards will be the most beneficial for your particular business’s needs.