FUEL card wars have broken out, with Britain's second largest card company launching a major new offensive as fleets turn to fuel cards to control rocketing bills.

Industry figures reveal that the UK fuel card market has increased from 1.2 million cards in circulation to more than 1.3 million in the last year and this week the Harpur Group, which owns Overdrive and Dialcard, announced it was to take the sales and marketing of its cards back in house after 18 months of management by Fleet Cost Management.

The move is designed to increase market share and coincides with what FCM called 'the increased threat from oil company fuel cards' and the merger of BP and Mobil, which became effective on November 1. Industry insiders said Shell had been particularly aggressive in the fuel card market in the last year.

Harpur, which has a 50% stake in FCM and claims to have around 450,000 cards in circulation, said despite the intense competition, business had grown and further expansion was planned.