Why a Fuel Card will Save You Money
Originally published on August 09, 2019
Every so often someone asks us, ‘do fuel cards save you money?’ We are delighted to tell you that, in a variety of ways, they do. Saving money on fuel prices is one of the top benefits of securing fuel cards for you or your fleet, no matter how large or small it may be. So, how does this work?
Fuel Card Discounts
Fleet fuel cards from the major suppliers often provide a discount on every litre of fuel. This discount is usually volume-based, so the more you draw the better price you get. This is an industry standard-discount which rewards businesses for choosing their brand. If you can save 1-2 pence per litre from the forecourt price, this amounts to quite the saving overall. While standard or supermarket fuel cards don’t always secure a discount, they give you access to nationwide supermarkets where fuel is already cheaper.
Drop the Risks of Carrying Cash
Even if you or your drivers are highly organised, carrying cash comes with risks. According to the Office for National Statistics, the last decade has seen vehicle-related theft account for one in seven crimes and even the most careful drivers can drop or lose a wallet. While you could be sure this wouldn’t happen to you or your drivers, consider the potential scenarios if it did:
- Replacing lost funds
- You or your driver left stranded with no money to pay for fuel, incurring the cost of breakdown cover, tow vehicle, overnight accommodation, etc
- A possible lawsuit if your driver is attacked or robbed and tries to prosecute you for failing to fulfil your duty of care
You can comfortably avoid these potentially expensive risks by applying for fuel cards for your fleet, ensuring your drivers have no need to carry company cash to pay for fuel.
Avoid Card Fees
While this varies between fuel card providers, many won’t charge interest or transactions fees. By pre-loading a set amount of litres on your fuel card, you can stay in control of spending limits – perfect for smaller companies! Just be sure to check you’ve been made aware of all the fees before committing to a fuel card deal. Depending on the provider, there can be hidden costs.
Cut Down Accountancy Time
Fuel cards linked to online management systems allow users to manage their fuel card account online to monitor activity, request copies of invoices and download reports. If you outsource your accountant on a retainer, this hassle-free system increases efficiency by cutting down time, otherwise spent chasing invoices or putting reports together.