Whether you run a small business or manage corporate fleets, fuel efficiency is a huge challenge. One of the best ways to reduce business fuel expenses is to use a fuel card.
A business fuel card works just like a credit or debit card, with a couple of differences. Your drivers use it to pay for fuel and other vehicle maintenance tasks at partner stations. And at the end of the month, you pay off the amount they’ve spent.
Not sure if taking out a fuel card is the right move? This guide will offer clarity. Here are four reasons your business needs a fuel card today:
Fuel costs have reached a new high for businesses. Reasons include:
Volatile fuel prices
Inflation
Operational costs
Excessive idling
Stop-and-go traffic
Inadequate fuel monitoring
Business fuel cards can cut these additional fleet costs at least by half. Many fuel card providers offer discounts at fuel stations across their network. It might seem like a lot, but even small reductions in fuel prices can accumulate savings over time.
Keep in mind that fuel cards offer discounts that vary in nature. For instance, some cards offer fixed cents-off per gallon, while others provide percentage-based savings. The more fuel you purchase through the card, the more money you’ll save.
You’ve got a ton of options, such as a BP fuel card or a private provider. Compare their features, such as low fees, wide acceptance, and additional non-fuel services.
In addition to direct cost reductions, some fuel card providers offer rebates. It’s pretty simple: You get cash back or credits every time one of your vehicles is fueled using the fuel card.
Rebates are usually tiered, which means the rebate ratio increases as you purchase more fuel within a billing cycle. For instance, buying 500-2,500 gallons might earn 3 cents off per gallon, while 5,000+ gallons could earn 5 cents off.
Some providers offer non-fuel purchases as rebates. This can include vehicle maintenance, repair, or washing. Consider your vehicles’ needs before choosing a fuel card provider.
A fuel card is a tool. It tracks every fuel purchase in a centralised system that you can access with a tap. As a small business owner or fleet manager, you can track exactly how much fuel your vehicles use in a month or week. You can also track the date, time, and location of refuelling.
This information is invaluable for businesses wanting to reduce their fleet expenses. You can take steps to optimise fuel usage. This can include:
Route optimisation
Training drivers to minimise idling, maintain a steady speed, and reduce weight
Maintaining vehicles
There is nothing more frustrating than dealing with crumpled fuel receipts at the end of every month. A fuel card reduces administrative burden. You will receive one fuel bill monthly or weekly. Track each expense and simplify invoicing. This will also streamline other business sectors, such as supply chain and tax reporting.
Supriyo Khan
Supriyo Khan
Supriyo Khan
Supriyo Khan
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