Petrol Cards: Compare Brands and Benefits
The reasons many companies which rely on transport are turning to petrol cards are all too clear:
According to the AA Fuel Price Report which is published monthly, forecourt petrol prices rose from an average of 77.8p per litre for unleaded (81.9p for superunleaded) in August 2001 to an average of 135.7p per litre (143.1p for superunleaded) in August 2011. That represents a price rise of over 75% in a ten year period. We live in a time of unprecedented fuel costs and with global peak-oil production near (or perhaps having already passed) prices can only rise over the long term.
A responsible business manager must therefore take advantage of any savings that can be made from petrol prices, fleet administration, fuel efficiency and fraud reduction. Business petrol cards can offer a simple, easy method to attain one or more of these objectives.
The wealth of petrol cards on offer in the UK can confuse even the most hawk-eyed of buyers. Here we attempt to breakdown the different types of card available from suppliers and the advantages of each.
‘Bunkered’ Petrol Cards
Fuel bunkering companies buy large amounts of petrol at wholesale prices. This means they can sell it to their petrol card customers at lower than forecourt prices from a fixed network of sites, usually nationwide, via a chip and pin card. The most popular bunkered petrol cards are:
- Keyfuels Fleet Card – Over 1,300 bunker sites throughout the UK and the cards are accepted at an additional 1,200 retail forecourts (where you pay polesign price). Fixed weekly petrol prices on contract or ‘Pay As You Go’ basis. 24/7 online account management with fuel usage analysis. Smart restrictions to prevent fraud through setting fill-up maximums. No extra charges.
- Texaco fastfuel Card – Over 1,750 sites UK wide. Fixed weekly petrol price. 24/7 online account management with fuel usage analysis. No up-front payments, interest free credit. Motorway coverage. Can be used on other service station products (snacks, drinks etc).
- UK Fuel Cards – Over 650 sites in the UK. Fixed weekly petrol price. 24/7 online account management with fuel usage analysis. Dedicated account manager. 28 days interest free credit.
Retail Petrol Cards
With retail petrol cards you get a much wider network of service stations at which you can use the card, which means your drivers will never get caught short and have to resort to their own pockets. You will however, be charged pump prices so lower savings area available. Interest free credit is the main advantage here (like a petrol credit card but cheaper), improving cashflow management, as well as loyalty bonuses, reduced admin and closer monitoring of fuel efficiency.
- BP Plus – The BP retail petrol card, as you’d expect, provides extensive coverage with over 3,000 participating stations. Online account management allows you to put in place anti-fraud measures and you get fleet management reports. Nectar points are awarded with fuel purchases. Single VAT approved invoice.
- TOTALCARD – Over 3,000 sites. Online account management with anti-fraud measures and reporting tools. Can be used on the M6 toll road. VAT approved invoices. Up to 6 weeks interest free credit (subject to status).
- Arval Allstar – The BNP Paribas petrol card is accepted at all service stations, including supermarkets, and provides an online tool for finding the cheapest nearby outlet. The usual online reporting and VAT approved invoices are provided. Enhanced security features for fraud prevention. Like having a petrol credit card without the huge APR – the only charge is £12 per annum per petrol card. 14 days interest free credit.
Obviously prices fluctuate daily (or weekly with bunkered suppliers) and can’t be quoted here but using the information above you should have clear idea of the different features and benefits available with business petrol cards and which might suit your company.
When comparing petrol cards from different suppliers always keep the following in mind:
- Are there up front charges?
- Are you charged interest on the balance?
- How much credit will you be extended and for how long?
As long as there are no hidden charges, a petrol card can’t do anything other than save you money, even if it’s only a very small amount, so start comparing petrol cards today.
