Fuel pricing schemes: look beyond the headline
In terms of fuel management, how do fleet managers choose the right pricing scheme? Today, there are different pricing schemes available including fixed weekly, pump price, discounted pump price and volume based rebates. The decision as to which one to choose depends on the control a business or fleet manager has over driver behaviour (in terms of where to draw fuel and so on) plus the type of network that is required in terms of convenience.
A mix of more than one pricing scheme might be appropriate for some fleet businesses. Fixed price products are sometimes less convenient whereas a universally accepted card, which is pump or discounted pump price, might be more convenient.
Alan King, Group President for UK and Australasia at global business payment and business card specialist Fleetcor states: “This balance of convenience and cost savings is key. In the UK for example, Allstar One provides customers with a universal fuel card network for maximum convenience. It can deliver both pump based and discounted pricing depending on needs and volume of usage.”
Monitoring suppliers - how to guarantee the best quality service partnership
Alan King stresses the importance of having agreed SLAs in place, particularly for larger fleets: “Firstly it’s important to understand how they’ll support implementation of the fuel card programme plus how easy it will be to get going. You should also measure response times to queries and issues.”
Once the programme is in place, soliciting driver feedback is invaluable. You need to know how easy-to-operate and convenient the cards are. Are they well accepted? It’s important to ensure the programme is functioning as intended.
Management Information and reports should be relevant and focused on the data you need, rather than bombarding you with information that doesn’t add value. As the purpose is to save time and cost, administrative ease (e.g. invoicing) is important and clarity of format is essential.
The fuel card supplier should have clear policies and procedures in place to guard against security and fraud. They should be proactive in protecting your business from the consequences of fraudulent spending and have the systems in place to deal with it effectively and quickly.
Alan King concludes: “It’s not just about headline price – ultimately, a good fuel card provider should be providing you with great service, deep insights and a product that saves you time and money.”
Author: Alison Compbell
