How BPF members can access substantial savings on business fuel

As a BPF member, you stand to benefit from a range of discounts on business goods and services.

The Fuel Store, a leading provider of fuel cards and fleet management services, has recently joined the BPF associate members group.

With the cost of fuel very much in the headlines, Jamie Bridgen, CEO at The Fuel Store, explores why using a fuel card can benefit businesses of all sizes.

What is a fuel card?

Fuel cards are an alternative to payment cards for business drivers. They offer better rates than forecourt prices, allowing businesses to save money on fuel costs and administration time. They are also used to track fuel spending, manage spending limits, and process expenses faster and more efficiently.

How does a fuel card work?

Fuel cards usually look a bit like a credit or store card. Drivers simply fill up, then authorise the payment at the kiosk, just as they would with any other payment method. The key difference is that no money changes hands at this stage. The fuel gets invoiced back to the company every week. 

Key benefits of using a fuel card

It is possible to improve cash flow, save money, and reduce administration time by using a fuel card.

Fuel cards give drivers and businesses access to better rates than standard pump prices. As well as reducing your overall fuel costs, they allow businesses to control spending by ensuring that drivers only use approved providers (and only spend on fuel). Choosing a fuel card with good coverage also helps with route planning – which can reduce fuel spend further.

According to the “Fraud Matters” report from Shell, 65% of fleet managers of company cars view fuel-related theft as a big problem. To combat this, some card providers offer added fraud protection, such as The Fuel Store’s Fraud Guard. Users can also access an intelligent fleet management platform that uses telematics and data validation algorithms to analyse fuel card transaction data to form actionable insights. Used to its full potential, Fuel AI can provide fuel spending savings in the region of 5% to 9% by making simple changes to driver behaviour, reducing fuel card misuse, and creating stronger accountability for fuel spend.

How do fuel cards save money?

Fuel cards usually offer savings on the cost of fuel. This means you will pay less than the cost of fuel at the pump. In 2023, customers of The Fuel Store saved an average of 12.5 pence per litre off forecourt prices – which can add up to a substantial saving for a small business or a large fleet. It’s worth doing your homework before signing up for a card - some providers claim savings of up to 30p per litre, but many of these will be comparing with motorway costs rather than average prices, in order to inflate their offer.

Fuel cards can also improve business cash flow. Opting to use a card is a relatively cheap way of accessing credit. They allow businesses to purchase fuel without dipping into their cash reserves. Invoices can be settled weekly, allowing businesses the opportunity to recoup costs from customer invoices before paying for fuel.

What’s the difference between a fuel card and a credit card?

Some businesses opt to use credit cards to cover fuel costs and other spending. Using a fuel card instead of a credit card offers businesses extra benefits.

Using a credit card to pay for fuel expenses means that drivers will pay the price displayed on the forecourt. Fuel cards allow them to access discounted fuel costs.

Company credit cards, as the name suggests, allow businesses to tap into credit, and pay bills later. However, they often attract hefty interest rates. Fuel cards usually offer a cheaper way of accessing credit. 

Using a credit card requires drivers to keep a receipt for every single transaction, for submission to HMRC. Using a fuel card means that there is no need for individual receipts. Businesses receive one HMRC-compliant invoice which simplifies admin.

Who can apply for a fuel card?

Businesses of all sizes can apply for a fuel card – from self-employed business owners or sole traders with one vehicle, SMEs with fleet managers, to large businesses with huge fleets. As well as fuel cards, there are EV charge cards for electric vehicles too – the only difference is that the card is used to access a network of EV chargers.

How do I get a Fuel Card?

Once you’re sold on the idea of getting a fuel card, the next step is to find the right one for your business.

There are plenty of comparison tools online, but the best thing you can do is to speak to an expert. The Fuel Store offers a range of cards. And, armed with some simple information about your business, we can help you find a fuel card that will give you maximum savings and minimum hassle.

To find out more, visit www.thefuelstore.co.uk