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Data from the AA Fuel Price Report suggests that the nominal price of diesel on UK forecourts rose by 79% between August 2001 and August 2011. A company which purchases high volumes of diesel on a regular basis must therefore take every available step to reduce expenditure on fuel. Diesel cards are a convenient and often cost-free way of achieving significant savings over a long period.
Diesel Cards: How they work
A diesel card provider buys diesel fuel in bulk at wholesale prices and ‘bunkers’ it at various sites around the UK. This enables them to offer diesel to its customers at prices below those you’ll find on the garage forecourt. Each driver or vehicle in the customer’s company is allocated a chip and PIN card which they can use to pay for fuel at the provider’s sites. The client company will either pay up front for this fuel or on a pay-as-you-go basis with a set time in which payment must be made.
Diesel cards can offer numerous benefits to a company:
- Fuel prices are lower and fixed weekly
- Drivers don’t have to carry cash
- Drivers don’t have to be reimbursed, saving on paperwork
- Drivers don’t have to keep VAT receipts – a single VAT approved invoice is sent each month
- Extra security measures help combat fraud and theft
- Fleet management reports to help you analyse fuel efficiency
- Online management to stop cards and set limits to amount of fuel bought, number of refills in a given period or geographical area
- Pay road tolls with cards
- Interest free credit period to aid cash-flow
Diesel Cards: Comparing Providers
Obviously some providers’ diesel cards will be better for your business than others. Things to watch out for include:
- Fixed set-up, annual or monthly charge for card
- Interest free period (these range from two to six weeks)
- Number of sites, location and whether HGV friendly (most providers show site locations on their website)
- Ease of cancelling a lost or stolen card
- Whether you can pay for other things such as road tolls or lubricants
- Whether the card is accepted at off-network sites and what the charges are
- Whether the card covers European sites and what the charges are
It’s highly recommended to compare as many diesel card providers as you can - small differences can add up over a long period. When diesel costs so much and with prices only likely to rise in the future it makes sense to reduce your fuel expenditure as much as you possibly can.
Diesel Card Quotes
Approved Fuel Cards provides a fast and free method for comparing leading Diesel Card suppliers based in the UK.
Just fill out our simple enquiry form to receive up to 4 no-obligation quotes for Diesel Cards.
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