With the fuel duty increase of 1p per litre set to come in from October, the cost of fuel remains at the top of many fleet managers’ agendas. There has been a lot of discussion in the media about fuel prices and this is one area that many fleets are talking about. There is no point wasting time speculating about what you can’t control – whether fuel prices will increase further and the level of increases. Now is the time to focus on what we know and what we can control.
With VAT rising to 20% in January, in addition to any fuel duty increase in October, the key is for all fleets to be prepared and take control of fuel expenditure so that you’re managing it and paying the cheapest price on the day. The best way to do this is to use a fuel card so that you can see what you’re spending and importantly where drivers are buying fuel and how much they are paying for it. Fuel prices vary significantly, not just regionally but at different forecourts in the same area and there can be as much as a 15 pence per litre differential between the cheapest and most expensive locations.
That’s why purchasing fuel from lower cost outlets is so important and encouraging drivers to do so is one of the key ways that a fleet can reduce its overall spend. Implementing a clear fuel policy on where and when drivers should buy their fuel isn’t being over the top, it is actually a very simple way of cutting fleet fuel bills. Having a fuel card with a wide network allows this type of policy to be adopted.
Worrying about fuel prices won’t change whether they go up or down. Whatever happens, the one constant is the need to gain visibility of and effectively manage these costs.
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