Running one or more vehicles as a business can be a costly affair. If your business relies on cars, vans or trucks of any kind, you’ll be well aware of how quickly everyday fuel costs can mount up.
But what’s surprising is how comparatively few businesses across the UK are currently taking advantage of fuel cards. Whether you’re new to the idea or simply aren’t up to speed with the benefits of fuel cards, here’s all you need to know about these surprisingly simple money savers for British businesses:
What Are Fuel Cards?
Essentially, a fuel card is a type of credit card, which can be used exclusively for purchasing fuel and covering other motoring expenses. Examples of which include purchases at petrol stations, paying tolls, washing vehicles and so on.
It’s possible to assign a fuel card to any individual driver or a specific vehicle, which can then be used with designated brands and/or at designated service stations at home and abroad.
Why Are Fuel Cards Beneficial?
The two biggest benefits of fuel cards are convenience and the potential to cut costs.
In terms of convenience, a fuel card ensures that the driver of the vehicle always has access to the funds needed to keep their vehicle moving and in good working order. In addition, their expenses can be tracked and segregated much more easily than if they were to put all their costs on a combined credit card or account.
Fuel cards also pave the way for significant savings. As is the case with credit cards, fuel card providers are known for handing out significant and ongoing discounts for choosing their cards over competitors’ offerings. Each and every time you use a fuel card, you could be saving money on your everyday fuel costs. Getting the best fuel card deal is as easy as using an independent comparison site to assess the available options and find the best fit for your business. A great example would be https://www.icompario.com/en-gb/fuel-cards/uk-fuels/
Whether you operate a single company car or an entire fleet of vehicles, you’ll find it quick and easy to get an unbeatable deal by comparing the market online.
What Are Fixed Price and Pump Price Fuel Cards?
Some fuel card providers offer a choice between two different types of fuel cards, while others stick exclusively with one of the two options. The basic characteristics of a fixed price and pump price fuel cards are as follows:
- Pump price fuel cards charge in accordance with the price on the pump at the time, meaning costs can increase or decrease in accordance with prices on the day.
- Fixed price fuel cards are charged at an agreed rate with every fill, irrespective of fuel costs at the time. This is the preferred choice for many businesses as it allows for more accurate fuel budgeting and cost control.
Technically speaking, it’s possible for both fixed price and pump price fuel cards to work out cheaper or more expensive, depending on what happens with fuel prices at the time. In both instances, the key to cutting costs lies in ensuring you get the best possible deal for your business, comparing the latest fuel card offers available from leading providers across the UK.