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Fuel Cards Can Save You Money
11/01/2007
As the price of gasoline continues to rise, fleet operators are on
the lookout for programs that can help control fuel costs. Fuel card
plans offer timely and comprehensive reporting, security, expense
monitoring and a large pool of fueling stations.
Using one comprehensive report, managers can track fuel purchase
types, times and amounts. This type of detailed monitoring helps to
maintain a fleet's fuel economy by curbing expenditures and reducing
time spent with paperwork. Online account management services allow for
easy access to data and downloadable records to the fleet's own
database.
Most providers offer a wide range of capabilities and options for
all fleet sizes and compositions including: security features, pricing,
exception reports and account manageability. Fuel management programs
allow you to eliminate paper receipts, monthly reconciliation and
manual tax preparation. Also, to prevent unauthorized purchases and
fuel consumption, each driver can have a unique PIN code that, in most
cases, can be turned on and off.
Every transaction is tracked and reported back to the fleet manager with optional grade and gallon limits.
Survey Says
Several respondents to a survey conducted by Automotive Fleet
magazine reported they were able to either reduce or realign their
workforce after adopting a fuel card program, citing that the fuel
reports had simplified work processes and sped up operations.
All the while, these fleet managers noted that they were now
receiving checks, balances and documentation that were never before
available. Many programs are either free to join or require a minimal
fee upfront, and cost pennies per transaction. Those fees are recouped,
and then some, with reduced paperwork and cost controls. AF's
survey revealed that, on average, fleets that move from no fuel program
to a managed fuel program realize savings of 15 percent on their
overall fuel management costs. With today's escalating fuel prices
there can be as much as 20 cents per gallon difference in price between
premium and regular unleaded fuel. Thus, for a fill-up of 15 gallons,
that could be $3 per tank.
For two tanks per week and 52 weeks in a year, a 50-vehicle fleet
could incur an additional $15,600 to unnecessarily fuel its fleet with
a higher grade of fuel.
Which Is Best For You?
Many fuel management companies will complete a full analysis of your
company's assets and needs in order to design a custom program. With
the growth of these fuel card programs, choosing the best fit for your
fleet may seem like a daunting task.
For instance, which service can give you the ability to control
purchases by type and cost direction – ultimately all done without
added staff, assets or expenses? We've compared the major fleet fuel
card programs to aid in your decision making process.
Business Fleet, by Chris Brown
Business Fleet, by Chris Brown, http://www.businessfleet.com/Channel/Fuel-Management/Article/Story/2007/11/Fuel-Cards-Can-Save-You-Money.aspx