How to budget for fuel price fluctuations
What is your total fuel bill likely to be next month? What about in six months’ time?
These are important questions for any business – yet no-one accurately knows the answers.
Why do fuel prices fluctuate?
At the moment, the Government appears to have frozen increases in fuel duty but there’s no freeze on fluctuations in the international price of oil or the changing values of currencies. This means pump prices can change suddenly in either direction.
The latest reports are that oil prices have recently risen on the world market while sterling has slumped. Both suggest fuel price rises will follow soon.
For fleet managers, the topsy-turvy prices of diesel and unleaded are a budgeting nightmare. You can see the regular rise and fall of fuel prices on the monthly monitoring page of the AA, Allstar’s partner organisation.
How can fuel cards help to budget?
The rollercoaster nature of the UK’s fuel prices have persuaded many businesses, whatever their size, to start using fuel cards. Industry experts recommend that a fuel card is a secure way of dealing with price changes and removes some of the budgeting uncertainty facing fleet managers.
Allstar is Britain’s leading fuel card provider with more than 35 years of experience and is the largest network of fuel sites. Allstar customers have a choice of various fuel card systems designed to help with different types of business transport requirements.
The new Allstar One card, for example, offers a discounted price for diesel. The Allstar One product means your company will be able to buy its diesel at a discounted price that is 2p per litre cheaper than the price advertised at the pump.
This means, your 40l fleet vehicle which fills up 4 times a week for a year could save £166.40. Times that by your entire fleet, say 50 vehicles and you could save £8320 – a considerable saving to your bottom line.
The Allstar One card can be made completely bespoke to your business. You can choose to add the ability to pay for glass repair, servicing, tyres, breakdown and M6 Tolls on your Allstar One card. Or, you can simply use it to only pay for fuel.
Alternatively, an Allstar supermarket fuel card ensures you get some of the lowest fuel prices in the UK but on a more restricted network. Whichever type of card you use, your drivers can pay for fuel without needing to collect receipts. Instead, the team at Allstar provide you with one detailed HMRC-compliant, VAT invoice every month.
For more information of which type of card will help your business plan for fuel price fluctuations, take a look at our products page.