Are you getting the best fuel card deal?

Competition is fierce in the fuel card market with a number of new launches over the past year, so it’s time to review whether the deal you signed up for is still the best.

Until recently, if you wanted a fuel card that was accepted at the majority of filling stations, including supermarket forecourts, you had one choice: Allstar.

But in March this year credit card giant Barclaycard entered the £6.5 billion fuel card market, teaming up with mileage capture provider The Miles Consultancy (TMC) to launch Fuel+.

It hopes to appeal to Allstar customers that have been dissatisfied with its decision to charge an administration fee for every transaction.

The Fuel+ card is accepted by all filling stations that take Visa cards – more than 8,000 in the UK – and can also be used overseas.

The convenience this offers drivers, combined with TMC’s micro audit, are the key reasons to consider Fuel+, according to John Bostock, accounts development director global commercial payments at Barclaycard Business Solutions.

TMC’s audit takes data from the card and its own mileage capture portal and uses it to identify issues in usage and mileage claims.

Thirty companies that trialled the system saw savings of up to 25% on their fuel spend. All have continued to use the card.
TMC charges £3 per month per card, but guarantees to refund twice that amount if a customer doesn’t make a saving in the first year compared to its current arrangement.

“We’re seeing huge interest,” says Bostock. “Our pipeline of prospects has quadrupled in the past three months.”

Fuel+ was recently added to the Government fuel card framework, operated by the Crown Commercial Service, which should generate interest in the public sector.

Jo Hammonds, asset manager at Mears Group, which has a fleet of 5,000 vehicles, is among the fleet operators interested in Fuel+ as network coverage is a key factor for him.

“We already have a business relationship with Barclaycard and the fuel card proposition looks very interesting,” he says.

Hammonds currently uses Allstar and its new charging structure has prompted him to shop around.

He says TMC’s fee is not dissimilar to Allstar’s, but the savings guarantee offered by TMC makes it a “win-win”.

However, he is waiting for a proposal from Allstar before deciding whether to switch.

Allstar has launched two new products in the past nine months: a supermarket-only card and the Allstar Premier Programme, which combines the Allstar and Allstar Discount Diesel cards. It also offers its Business Mileage Monitor software to all new customers free of charge.

The Allstar Premier Programme is proving popular, according to Meryl Gilbert, director – corporate and third-party field sales, at Allstar.

She argues that Allstar, which is owned by FleetCor, can “tick the box for most fleets because of the FleetCor family”.

As well as single and dual card offerings with Allstar, FleetCor has a multi-card offering with the Fuelcard Company.

There are other new entrants to the fuel card market for fleet operators to consider.

Specialist oil trading company Portland launched its fixed price fuel card in March. Unlike other providers, it gives customers the chance to fix the price of fuel for up to a year rather than using a weekly fixed price.

Some companies with thousands of vehicles already take this approach as it offers budgeting certainty. Portland has made this option available to all fleet sizes.

The drawback is that if the price drops significantly from the figure a fleet has fixed at, it will lose money. Conversely, if fuel prices rise, the fleet will gain.

Fleetmate, another recent launch, offers wide network coverage but at a fixed price, unlike Allstar and Fuel+ which are both pump price cards.

The UK’s first charity fuel card, which makes a donation to charity for every litre of fuel purchased, was launched by Professional Charity Services last month.

Other fleet suppliers have diversified into the fuel card market. Both RAC and Kwik Fit launched fuel cards last year, with the latter making a range of services available to purchase on the card.

Consider trialling fuel cards
Before deciding to switch, it is worth considering trialling different fuel card providers.

Fuelmate is offering a three-month free trial including fuel analysis of all company car users.

“Trialling a new card (and supplier) against your existing one lets you see if your current provider is giving you the best deal,” says Jonny Vintis, manager of Fuelmate. It is also keeps your current provider “on its toes”, he adds.

Portland is offering a one-month trial rather than the full 12 months fixed price.

Bostock says there is little point trialling the Fuel+ card as it is a Visa card and there are no acceptance issues. However, he does recommend a desktop trial.

If a potential customer gives TMC its existing fuel card data, it will perform an audit within a week to identify
potential savings.

If you want to compare pump price and fixed price fuel cards it might be worth conducting a trial as Cheshire Constabulary and Morrison Utility Services did.

Tony Raymond, project manager at Morrison Utility Services, says: “We ran a programme for three years comparing a weekly fixed price card against a pump price card. We tracked both prices and found that broadly in the south the fixed price was cheaper but in the north we were paying more because the pump prices were cheaper.”

The savings in the south were not enough to justify a switch to the fixed price card.

Before starting a trial, identify what your needs are such as whether national coverage is essential, the level of reporting needed, whether you want drivers to only purchase fuel with the card, or if payment terms are important to your company. Also consider security, such as chip and pin.

Always check the small print
Fleets should take into account the various charges from different providers and their terms and conditions.
TMC warns fleet operators to check the small print carefully as some contracts make customers liable for purchases made up to two days after they report a card lost or stolen.

Vintis adds: “Will you be given a fair price? Will you be looked after properly should something go wrong? These are the main issues, not the card itself.”

A trial of three to six months should give a fleet operator the opportunity to see how a new provider handles issues such as missing cards, as well as providing enough data to compare prices and reporting.

When comparing prices, a fleet should bear in mind how far a driver might have to travel to fill up.

Whichever card a fleet opts for, driver behaviour – both in terms of how efficiently they drive and where they fill up – shouldn’t be overlooked. Raymond says: “Your biggest saving is from your driver – your 7-12% fuel savings – not your 2ppl off the price of fuel, welcome saving that it is.”

Read on to compare cards...

Fuel cards: what’s new?

Portland Fixed Price Fuel Card
Provider: Portland
Type of card: Fixed price
Launched: March 2014
Network size: 1,500 sites
What it offers: Customers agree one price for diesel – based on the week’s national average retail price – and fix it for up to a year. The card can be used at the UK Fuels Network, including all branches of Morrisons and Tesco. Customers receive a weekly itemised fuel bill and online account management facility to access their data in real-time.
Fees: No fee other than for replacement cards (replaced at cost)

Supermarket Fuel Card
Provider: FleetCor
Type of card: Pump price
Launched: September 2013
Network size: More than 1,100 sites.
What it offers: The card restricts drivers to buying fuel at supermarkets only. It is accepted by the four main supermarket brands – Tesco,
Morrisons, Sainsbury’s and Asda. Supermarket fuel stations
are typically three to four pence per litre cheaper than the UK national average fuel price, according to Allstar. Customers also benefit from supermarket loyalty points. Allstar has developed a range of tools to help drivers plan their route including free sat-nav downloads and smartphone applications. It also offers an online site locator, online account management, HMRC VAT approved invoices and discounted rates for both AA Breakdown and AA’s fuel assist service.
Fees: The standard fee is £24 per card, but this can be discounted depending on the number of cards and volume. A replacement card costs £6. There are no network service or transaction charges

Allstar Premier Programme
Provider: FleetCor
Type of card: Fixed price
and pump price
Launched: February 2014
Network size: Discount Diesel card – more than 1,700 sites, Allstar card – more than 8,000
What it offers: Customers have two fuel cards – an Allstar card (pump price) plus the Allstar Discount Diesel card (fixed weekly price) for use in the discount diesel network. The Discount Diesel card offers savings of up to four pence per litre. Fleets receive one invoice and one data report covering transactions for both cards. Products identifying discount fuel outlets are available including a mobile app and online fuel finder. It also offers up to 25% savings on non-fuel purchases such as AA Breakdown Recovery and Fuel Assist, free use of Allstar’s fuel management tool Business Mileage Monitor, free consultancy on reducing fuel costs and no additional service fee.
Fees: Network service fee negotiated with customer

RAC Fuel Card
Provider: RAC
Type of card: Pump price
Launched: June 2013
Network size: More than 1,000 sites
What it offers: The card
can be used at Tesco and Morrisons and offers up to 45 days credit on fuel transactions. There are no minimum fuel volumes. Online reporting is available 24/7 along with one HMRC-approved invoice. Applying for the RAC Fuel Card also entitles companies to join the RAC Business Club.
Fees: £10 annual fee per card. No transaction fees

Fuel+
Provider: Barclaycard Business Solutions, in association with The Miles Consultancy (TMC)
Type of card: Pump price
Launched: March 2014
Network size: More than 8,000 sites
What it offers: It combines a fuel expenses Barclaycard with a mileage capture and audit system, developed by TMC. The mileage capture system enables drivers to log their business mileage online, over the phone or via text. Companies can also opt to use the TMC Mileage App, which allows drivers to utilise the GPS tracking in their smartphone, letting them log their
miles on the go. The system then analyses all relevant data. It can identify any irregular patterns of spend, helping to reduce over-claims and ensure accurate VAT recovery. Fleets also have access to a range of management information reports, while savings opportunities are identified with advice.
Fees: Fleets may face a monthly charge of up to £2 per card from Barclaycard dependent on fuel spend. TMC charges £3 per month per card, but will refund twice that amount if the customer doesn’t make a saving in the first year compared to its current deal

Fleetmate
Provider: Fuelmate
Type of card: Fixed price
Launched: April 2014
Network size: More than 7,000 sites
What it offers: Allows fleet operators to pay one price at the pumps regardless of the fuel brand they are using. As Fleetmate is a fuel card reseller, it can be used at UK Fuels, Keyfuels, BP, Shell Esso and Texaco sites. Fuelmate will also carry out a free fuel-use analysis for all potential customers.
Fees: Customers using more than 40,000 litres a month won’t pay for cards, otherwise it is £5 per annum. Customers using under 15,000 litres per month face a 0.5% admin fee.
No admin fee applies for fuel use above this level. Replacement card fees coincide with the cost of the card, so if there are no card fees, there will be no replacement card charge

Kwik Fit Drive
Provider: Kwik Fit
Type of card: Pump price
Launched: June 2013
Network size: More than 1,000 sites
What it offers: The card can be used at filling stations operated by Tesco and Morrisons which typically offer a two to three pence per litre saving over oil company-branded outlets, according to Kwik Fit. Drivers can pay for the full range of goods and services at Kwik Fit’s network of more than 600 centres and, if using the company’s mobile tyre-fitting service, AA recovery services and parking in more than 260 NCP-operated car parks. It offers up to 45 days interest-free credit. Management reporting is available via an online account portal. Information can be recorded online relevant to each vehicle such as when the next service is due and all vehicle-related expenditure so the most cost-effective vehicles can be identified and remedial action taken in respect of other cars and vans. Fleets are able to set up authorisation levels relating to the volume of fuel purchased and the ability to charge the purchase or other goods and services to the Drive card on a card-by-card, driver-by-driver or vehicle-by-vehicle basis.
Fees: No network service charge, no charge for replacement cards, no transaction, monthly or annual fees

Professional Charity Fuel Card
Provider: Professional Charity Services (PCS)
Type of card: Fixed price
Launched: May 2014
Network size: More than 4,000 sites
What it offers: The card operates in a similar way to the majority of fuel cards available, with the added benefit of a donation to charity for every litre of fuel purchased. It can be used by
charities to fuel their own vehicle fleet or by the corporate sector adopting the card and nominating their own charity or charities to support. PCS has joined forces with Shell, which will rebate between 1.75 pence per litre and 3.05ppl to individual charities. The rebate will depend on the volume of fuel purchased collectively by users of the charity-specific fuel cards. Up to 90% of the rebate goes to the charity with 10% to PCS. It is available at Shell sites and partner sites operated by Esso, Texaco, Total, Gulf and Gleaners. It is expected to be followed up with the launch of a B2C version for charities’ employees and supporters that can be used across all forecourts including supermarkets. Each card is available displaying the name and logo of the user’s chosen charity. Fleets also benefit from a range of fuel management tools and consolidated reporting available through Shell Fuel Cards. A smartphone app enables location of the nearest fuel forecourt. The card is chip and pin enabled.
Fees: £5 annual fee per card. No transaction fees or charges for damaged or replacement cards

Aside from the new launches, there are number of well-established fuel cards to consider.

Oil companies Shell and BP both have pump and fixed price fuel cards and the size of their network is bolstered by a number of partners. BP’s sites include Total and Texaco while Shell partners with Esso, for example.

You could also consider going to a fuel card reseller, such as the Fuelcard Company, the Fuel Card People or UK Fuels. They offer fixed price, pump price and bunker price fuel cards.

FleetCor, which owns the Fuelcard Company as well as Allstar and Keyfuels, says that if a fleet’s priority is price, then a multi-card option through a single provider can be the answer.

A fuelcard reseller will offer a consolidated invoice which will reduce administration.

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Around two-thirds (65.6%) of fleet operators use one fuel card provider.

Many fleet operators believe it isn’t feasible to have more than one provider as it means having two lots of reporting and terms and conditions, increasing the admin burden.

It is also potentially confusing for drivers unless there are clear guidelines.

“It is complicated to manage unless you have a sophisticated fleet department,” says Meryl Gilbert, of Allstar.  

However, there are potential savings from making sure that different driver populations have the right type of fuel card for their needs.

“Some companies are less flexible with HGVs and LCVs than they want to be with company car drivers,” says Gilbert. “Company car drivers may not go to the same place every day, whereas commercial vehicles may follow a set route.”

You might therefore give company car drivers a card with a wide network coverage and give CV drivers a card with coverage that suits their route. “You need to weigh up cost, admin ease and operational efficiency,” says Gilbert.

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Case Study: Cheshire Constabulary

Fuel is Cheshire Constabulary’s biggest fleet cost.

It has 640 vehicles and up to 3,000 drivers doing a total of 11.5 million miles a year.

As a result, John Heussi, head of fleet services, frequently reviews the market.

Last year he conducted a three-month trial comparing a fixed price fuel card with his current provider’s pump price card running 60 vehicles on each card.

“A trial is a good way of checking any promised advantages from the new system before you commit,” he says.

“We road test vehicles before we buy them, so why not fuel cards?”

As an emergency service, Cheshire Constabulary cannot afford to have drivers travelling miles out of their way to fill up.

“Wide coverage in our working area is really important,” Heussi says.

“I also want weekly reports with vehicle mileages for servicing.

“As we don’t have dedicated drivers per vehicle, servicing is done from a central point.”
The trial found that the fixed price card was more expensive.

“The reporting was not as good as promised and the savings weren’t there,” Heussi says.
“It proved that our current provider was the right option.”