Fixed vs Pump Price, and finding the right fuel card for your business
So, you’ve come to the conclusion that the control, compliance, and convenience of a fuel card will benefit your business. Now, it’s a case of picking the right one and the right approach to fit your exact needs.
We’ll look at the areas you need to consider and the steps to take to ensure you end up with the card that benefits you most.
Fixed Price vs Pump Price Fuel Cards
The first choice to make is a strategic one, based on how you want to buy fuel: fixed price versus pump price.
Fixed Price Fuel Cards
Fuel cards offering fixed prices allow your drivers to purchase fuel at a set rate, regardless of fluctuating pump prices. Usually, the price is set at the start of the week, helping you to predict fuel costs and manage budgets more effectively across the country.
For a fleet, especially commercial ones doing extremely high mileages, it ensures that no matter where your vehicles are, they all pay the same, shielding them from price changes nationally or being hit by higher prices at certain stations.
After all, there can be huge variations in the cost of fuel around the country or on certain routes and road types. Fixed price gives you the ability to take an unknown variable out of the operation. Every route cost becomes far more predictable, which in turn helps with logistics budgeting. At the same time, there may be fewer locations to refuel at. However, if you’re in the business of major haulage, logistics, or transportation, you likely have route planning sorted for this type of operation and can factor this in.
Fixed price fuel cards available through The Fuelcard Company include Keyfuels, Shell Commercial, Shell CRT, Texaco Fastfuels and Esso Commercial.
Pump Price Fuel Cards
Pump price cards allow drivers to refuel at a wider range of locations, paying the price displayed at the pump.
While they offer greater flexibility in station choice, they leave businesses vulnerable to market price changes, especially at motorways and high-cost locations. That said, you can sometimes get discounts off the displayed price, either in percentage or pence-per-litre terms.
Pump price fuel cards could be beneficial for fleets that prioritise accessibility over fixed pricing. If you don’t know exactly where your vehicles are going to be, what jobs they may be used for, or what routes they might take, then pump price fuel might cost slightly more, but it will keep them on the road and working.
Pump price fuel cards available through The Fuelcard Company include Allstar One, Allstar Chargepass, Allstar Supermarket+, Esso Fleet and Shell Multi.
Choosing the right fuel card for your business
Once you’ve worked out how you want to buy fuel, it’s a case of picking a card that can deliver that strategy.
There are a vast range of options, and presented with all of them can be bewildering. So let’s break it down. Firstly, branded versus non-branded cards.
Branded Fuel Cards
Branded fuel cards (such as the Shell CRT Card) will usually come from recognisable fuel station chains or oil companies. They’re often backed by major global corporations. All are ideal for businesses where drivers frequently use specific fuel station chains. They will often come with exclusive discounts and additional services as a result of your drivers’ loyalty.
However, you need to ensure that branded stations are available for all your drivers’ needs. If you’re a business regularly operating in an area that’s well served, great. But if there’s not a branded station within miles of your drivers, you could be wasting a lot of time and money searching for a suitable refuelling location.
Non-Branded Fuel Cards
Non-branded fuel cards, usually from a network such as Allstar, allow drivers to access a wider number of locations and brands, making them suitable for businesses that require more flexibility.
They are a must-have for businesses with fleets that travel across the country because these cards minimise route deviations by offering access to an extensive network of fuel stations. They may also include additional perks, such as discounts on certain types of fuel, and allow the purchase of other vehicle-related items, such as oil.
Think about your fleet and fuel requirements
Every business has unique fuel consumption needs, and the right fuel card should align with these requirements.
Small businesses with a handful of vehicles might prioritise flexibility and minimal fees, while larger fleets benefit from cards that offer detailed tracking and centralised billing.
HGV operators may require specialised fuel cards that offer discounts at truck-friendly refuelling stations.
Fuel type
Do you use petrol, diesel, a mix of both, or even electric, HVO, or LPG? Some fuel cards are tailored specifically for one type of fuel, while others offer a combination.
Ensure that your chosen card aligns with your fleet’s fuel needs. There’s no point having a nationwide fixed-price network for commercial vehicles when what you really need is local flexibility and charge points for company cars.
Expense controls and security features
Once you’ve ticked the boxes on how to buy, where, and for whom, what else do you want to know about your drivers and vehicles?
One of the main benefits of fuel cards is their ability to enforce spending controls and enhanced security.
Many allow businesses to set spending caps to prevent excessive or unauthorised fuel purchases. Is this something you feel is important to your business?
Some cards can be configured to only allow fuel purchases, or even only a certain volume at any time. Features like PIN authentication and real-time transaction monitoring help prevent unauthorised usage and reduce the risk of fuel fraud.
And how easily do you want to see what’s going on? Some fuel card providers offer online dashboards where you can drill down into purchases and volumes to understand in minute detail how the fleet is running. This could help improve efficiency, identify problems, and reduce operational costs.
And Finally: don’t forget to regularly review your fuel card
Just because fixed or pump price fuel cards are right for you now, it’s not a one-time decision. As your business grows and changes, your fuel requirements may change. More employees, new (and different) vehicles, or expanded areas of operation can all impact the effectiveness of your fuel card.
Periodically reviewing your fuel card will ensure it continues to meet your needs and deliver maximum value.
To find the right fuel card for your business, browse and compare cards here.