PUBLIC sector fleets are set to save thousands of pounds in fuel bills and slash administrative red tape following the launch of a new fuel card. Designed to serve the sector's hundreds of thousands of vehicles in the first multi-million pound contract of its kind, Monitor Card offers similar services to the company's AllStar card, and within days of its unveiling it has sparked massive interest within the public sector.

Swindon-based PHH was awarded the contract to supply and manage the new card by The Buying Agency, a Government-funded executive agency of the Cabinet Office. The TBA says there have been inquiries from the Government departments, police forces, fire brigades, local authorities and NHS Trusts.

And in the first five days of the Monitor Card being available PHH received 32 inquiries, which is expected to amount to the distribution of about 2,000 cards. The first public sector body to sign up for the new card was the National Blood Service. Public sector bodies will cut costs by obtaining rebates through the card related to the volume of fuel bought and they will also make savings by no longer having to go through a tendering process when looking to introduce or change a fuel card. Until now they have had to go through a long advertising and tendering process under European Union legislation.

The contract for the Monitor Card is initially for a three-year period with an option to extend this by another two years. Until now all public sector organisations have managed their own fuel supply, some using fuel cards and others not, with no national structure.