A BUDGET bonanza worth more than £400 million for British fleets could be jeopardised unless there is a radical rethink in attitudes to fleet management. The Government will slash up to 3p a litre (13p a gallon) off the cleanest, low sulphur fuels in the Budget next year as part of a £2 billion-plus 'green' giveaway by Chancellor of the Exchequer Gordon Brown, with fleets able to grab a hefty share.

But fears are growing that oil companies could simply swallow up the cuts and not pass them on as happened in some cases with a 1p per litre (4.5p per gallon) cut in duty on ultra-low sulphur petrol in October. Only through a shake-up of attitudes to fleet management will fleets be able to measure whether the duty cuts have actually reached fleet coffers, the industry has been warned.

The stakes are high for the fleet industry. Arval PHH Vehicle Solutions estimates the company car parc is set for potential savings of £284 million a year, while the UK's two million vans could see savings worth £182 million as a result of duty cuts announced by the chancellor in his Pre-Budget Report.

But Government has already condemned the fleet industry for wasting £450 million a year because fleet managers are failing to monitor fuel bills. Keith Greenhead, director of fuel for Arval PHH Vehicle Solutions, said: 'Fleet managers will need to ensure they know these savings are being passed on. They need to choose a method of checking figures and get on with it. This should start at the top of the company, from the managing director down.'

Stewart Whyte, director of the Association of Car Fleet Operators added: 'If you have no idea what your fuel bill is at the moment, then worrying about whether you are going to see a cut in duty offered by Government is a waste of time.

'Rather than worrying about a 3p a litre decrease, fleets should check the current mileage and fuel consumption of their fleet and then decide what vehicles and what mileage to allow next year. That could get them a 20% saving on fuel costs and only then would they be in a position to start worrying about whether fuel companies are passing on duty cuts. Unless you measure, you can't manage.'