Fuel cards: Four key benefits of using a fuel card and how much you could save
Disabled caller says fuel bill has gone from £78 to £218
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A fuel card can be used by drivers to pay for petrol or diesel while filling up at a forecourt to manage their expenses as they work. Some types of fuel cards even include hybrid and electric charging vehicles too, simplifying the administration process and costs involved in manually claiming back expenses. This simple service has many benefits for both the drivers and business owners while fuel costs are high, but what are they? How much can you save while using a fuel card?
Drivers don’t have to use their personal funds
The expense system used by most businesses means drivers have to wait to be reimbursed for the fuel used while working for their employer.
While this works for some people, the rising cost of living and consistently high fuel prices have stretched the budget of millions of Britons, leaving many people unable to afford such expenses.
A fuel card eliminates this issue by giving drivers the money at the time of purchase, which is then tracked by the business.
Allstar Business Solutions said: “Instead of paying for company fuel on a personal card or with cash, drivers get a fuel card of their own, pay for fuel as they normally would do and then the company account is billed directly.”
While this won’t necessarily save the company money, it allows drivers to dodge the burden of having to wait to be reimbursed for the cost of filling up their vehicle.
Businesses have more control over spending
Everyone is feeling the pinch of consistently high fuel costs, forcing many businesses to re-evaluate their spending habits in order to remain profitable.
While a fuel card can’t make the base rate of petrol diesel or charging ports cheaper, it does give businesses more control over the spending habits of their drivers.
The RAC said: “By restricting the purchases to fuel only, it gives you peace of mind that your money is being used appropriately.
“On some fuel cards, you can also add on unavoidable extras – such as paying charges on toll roads or tyre repair. “
It makes expenses easier to manage
For businesses with multiple drivers, managing expenses can be a time-consuming task.
When drivers use a fuel card, the fuel payments all come into one account, on a single invoice which makes clearing your fuel costs much simpler than reimbursing each driver for their fuel costs.
This not only saves time, but allows business owners to track and limit petrol and diesel expenses while making the overall breakdown of business costs easier to manage.
Invoices are HMRC approved
The single invoice which is generated to collate all fuel card payments is HMRC-compliant, leaving little room for error in the calculations.
This makes expense administration easier and more efficient for businesses
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How much money can you save by using a fuel card?
According to the fuelcard company, some fuel cards offer savings on the cost of petrol and diesel, which often means the price you pay is less than the price you see at the pump.
Drivers can often make savings of around two to three pence per litre on the national average pump price which, when multiplied across a fleet of company cars and vans, or a HGV haulier, could amount to significant savings every year.
The exact savings will depend on how you pay, so it is important to shop around for the best fuel card to suit your needs.
Payment options include:
A fixed weekly rate
- The fuel card supplier will set the cost of fuel and communicate this with you weekly
- You pay one price for fuel
- You know exactly how much your drivers will be paying when they fill up at specified fuel sites
Pump price service
- You pay the price you see at the pump
- Open to fluctuating costs when charges increase or decrease
- Higher charges at motorway service stations
- Offers lots of flexibility
- May offer access to low-cost supermarket sites or savings on some network pump pricing
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