There are two main payment options for fuel cards- weekly fixed rate and pump related price. Both have their benefits, and it depends on your specific business needs as to which one is best for you.
To help you make an informed decision, we explain how they differ and the unique benefits they provide.
When you choose a pump price related fuel card, you are simply charged the price displayed on the pump. Depending on your fuel card provider or volume drawn you may be able to access discounts on the pump price, other providers may include a surcharge on the forecourt price.
This price may change from day to day depending on the market, and can also vary depending on where your drivers refuel – for example, service stations in rural areas tend to be more expensive. If you opt for a multi-brand fuel card, you may find differences in the pump prices between networks.
The main benefit of a pump price related fuel card for smaller fleets is the extensive network coverage, with more service stations accepting pump price related fuel cards, drivers have greater flexibility for refuelling quickly without any unnecessary detours.
Fuel cards giving pump related prices are suitable for all fleet and business types, so whatever your industry, vehicle or fuel type there will be a pump price fuel card to suit your needs.
With a fixed price card your fuel rate is determined by the diesel wholesale price and fixed for the week. No matter how much the retail rates shift throughout the next seven days, your rate won’t change.
Prices are emailed to you in advance, usually on a Friday for the week ahead. Knowing how much you will pay for your fuel makes controlling your fuel spend easier. Being aware of any rises in the rates, means you can plan ahead and refuel beforehand at the lower rate. With prices usually cheaper than the retail pump price, it is a great option to receive further savings on your fuel spend.
The fixed price fuel cards are particularly suited to hauliers, large fleets and high-volume users. Despite having a slightly smaller network than the pump price cards, the fixed price sites are strategically located along all major transport routes.
Motorway service stations are notoriously more expensive with some charging up to 12p more than non-motorway sites. With a fixed rate fuel card however, your drivers can access a wide network of motorway service stations, but without the inflated prices. You will receive the same fixed, competitive pricing no matter where they refuel, giving you greater control over your fuel spend.
There are many options for both types of cards and whichever you decide, you will enjoy a safe and simple way to manage your business fleet and fuel costs.
Choose a fuel card provider which offers the most comprehensive and robust online management tools and service station locators. The best options are those that can be downloaded as an application to smartphones or any internet enabled device.
Such tools will not only allow you to manage your mobile workforce from wherever you are, but will also enable drivers to easily find the closest, suitable service station along their route for convenient refuelling.
Whether you prefer pump related price or fixed rate, you can compare fuel cards with iCompario to find the best fuel card for your business.