Fuel card benefits: How UK businesses can save on fuel costs in 2024
October 9th, 2024
Fuel costs remain a major concern for businesses, especially those that rely on the transportation of goods and services. With fuel prices fluctuating and often hitting record highs, managing fuel expenses has become increasingly challenging. In 2024, fuel cards offer a practical solution to help businesses control these costs and improve financial management.
- Discounts on fuel purchases
Fuel cards allow businesses to access exclusive discounts on fuel through partnerships with fuel stations or networks. These discounts can directly reduce the amount spent on fuel, which is especially beneficial for companies operating large fleets.
- Protection from price volatility
Some fuel card providers offer fixed weekly pricing, protecting businesses from fluctuating fuel costs. This helps companies plan around stable fuel prices, making budgeting and cash flow management more predictable and less prone to market volatility.
- Monitoring fuel efficiency
Fuel cards also provide detailed reporting on fuel consumption for each vehicle or driver, allowing businesses to monitor fuel efficiency across their fleets. By tracking this data, businesses can identify inefficient practices, reduce fuel waste, and ultimately lower fuel costs.
- Enhanced control over expenses
With fuel cards, businesses can set spending limits and restrict purchases to fuel-related items, preventing misuse or unauthorised purchases. In addition, real-time transaction monitoring ensures cost transparency and prevents overspending, making fuel management more efficient, particularly for larger fleets.
- Simplified VAT reclaim
Fuel card providers issue VAT-compliant invoices, consolidating all fuel transactions into a single document. This reduces administrative costs and simplifies the process of reclaiming VAT, ensuring businesses can recover the full amount they’re entitled to without the hassle of handling individual receipts.
- Flexible payment terms
Many fuel card providers offer flexible payment terms, allowing businesses to consolidate fuel expenses and settle them periodically, whether on a weekly or monthly basis. This eases cash flow pressures, as businesses aren’t required to pay for fuel upfront at the pump.
- Rewards for additional savings
Some fuel card providers offer reward programs, where businesses can earn points or cashback on fuel purchases. These rewards can be redeemed for discounts or other services, providing an additional layer of savings, especially for businesses with high fuel usage.