If you operate one or more commercial vehicles, and still rely on ‘pay and reclaim’ for fuel, you are likely to be paying heavily for the policy. Not only are you being charged top prices per litre, recovering the VAT on such transactions is very difficult and you will loose out on your weekly fuel expenditure. Since the issue of the 6th European VAT Directive, the case for fuelcards has never been stronger.
But which card ? There are some important differences – and the unwary may find themselves still paying more than they need – in more ways than one.
The right TYPE of fuelcard - Of the two main card types currently in use, DON’T opt for Retail fuelcards. They do offer some convenience and – because your business receives an invoice rather than individual purchase receipts – VAT recoverability. However, fuel is charged at the normal pump price for the particular outlet where it is bought. Each card can be charged at £1 or more per month – with further charges for management reports tailored to your specific requirements or for on-line account management.Commercial fuelcards are a much better deal because they generally enable fuel to be purchased at a lower price than that shown on the pump. For example, a leading commercial fuelcard supplier, abbey Fuelcards, quotes a weekly price per litre for fuel in advance – via SMS text, fax or email – and this applies nationwide for seven consecutive days, Sunday-to-Saturday, at ALL sites accepting the card concerned. Annual savings off your fuel bill can be substantial.
The right site NETWORK - Good prices must be matched by convenient locations of refuelling sites that will accept your fuelcard. So make sure the site network suits your commercial operations. abbey Fuelcards, who operate several fuelcards to cover different business types, always check that each new member gets the card best suited to their individual operational needs.
For example, a business that mainly operates along trunk roads and urban fringes would typically be offered the abbey diesel direct card – with 1000+ sites across the UK, most of which are ‘high canopy’ HGV-friendly refuelling facilities. For more localised operations, including mixed fleets of petrol and diesel vehicles, the abbey Fastfuel card is accepted at over 1400 Texaco outlets for purchases of both fuels.
The right SERVICE - Here is the final main consideration for fuelcard selection. Basic monthly card fees can vary, but beware avoidable or hidden costs for services. Some card operators charge for certain facilities – while others provide the same services free of charge.abbey Fuelcards simply charge 50p per month per card issued – and this covers ALL its member services. There are no additional charges, for example, for account set-up, card replacement, customised management reports and analyses, 24/7 on-line account access, site locator services via SMS text or Sat-Nav – or for the various security features of their service, including instant card stop, irregular usage monitoring and alert facility, and zero liability protection.
Steve Clarke, Customer Services and Marketing Manager for abbey Fuelcards Ltd., has a clear view of what ultimately represents best value for owner-drivers and fleets of commercial vehicles:
'We’re aware that some commercial card operators treat support services as optional – and chargeable – extras. That means their cardholders end up with additional expenses that reduce net savings off their fuel budget. At abbey Fuelcards, we’ve set out to create the definitive best deal for our members. Our monthly card fee is all-inclusive – so there are no extras and no nasty surprises for abbey cardholders – and they get a comprehensive service tailored to their individual needs.'