Fuel Cards – When To Use Them?
The first question that gets asked by a new fuel card user is to know where can he use the cards? Pretty common sense question to derive maximum benefits out of the fuel card or gas card.
Well, let us begin by defining what does a fixed-rate fuel card do.
Fuel cards are like credit cards. However, the only difference is that with a fuel card you can only buy fuel and nothing else. The way it works is that your company opens a fuel card account with a fuel card company. And all drivers within the company use fuel cards to refuel at designated fuel pumps. At the end of the month you get invoice for all the transactions made by drivers throughout the month.
A fixed-rate fuel card involves getting the diesel for each week at a fixed rate. What this means is that your fleet gets to use the diesel at a rate that remains unchanged during the week and you stand completely protected against daily movements in diesel prices. This alone can save you around 3-4p per litre of diesel.
In case you are wondering where can the fuel cards be used, I will help you uncover that below.
Fuel cards work on different distribution networks. So, if you have a Shell fuel card you can refuel at the designated sites of Shell and if you have an Esso fuel card you can refuel at one of the many designated sites of Esso throught the country.
When you consider that there are around 8,500 fuel stations in the UK this number seems a little small and we regularly get asked “why would i restrict the sites my drivers can use when the can use a credit card and fill up anywhere?”
The answer is simple, Fuel cards offer far better administration benefits than fuel cards with a detailed VAT approved invoice and no interest charged on purchases, fixed rate fuel cards also offer a saving to companies of 3-4p per litre.
Use diesel fuel cards for fixed weekly costs, or check out other options in fuel cards.
