Fuel cards are a powerful weapon for fleet managers seeking to drive down costs

Anyone looking to keep a closer eye on fleet fuel costs might consider using fuel cards. The payment cards allow fleet managers to carefully track, measure and control fuel usage. Aligned to specific petrol companies, the cards allow drivers to fill up company cars and vans without having to pay for the fuel themselves and claim back the money. The employer pays the overall bill centrally and also receives detailed management information about usage, often right down to the individual driver and vehicle level. Some schemes allow prices to be set on a fixed weekly basis, often at a lower rate than what you're charged at the pumps.

Stewart Whyte, director at fleet operator association ACFO and owner of fleet consultancy Fleet Audits, says the cards can be a powerful device for fleet managers. "Used properly, with internal resources allocated to managing the scheme, they are one of the best tools to help fleet managers drive down fuel costs. It's one of the few things that should be applied across all fleets," he suggests.

Fuel cards are used by about half of all UK fleets, covering roughly 40 per cent of fleet cars and vans. With the ability to monitor mileage and fuel consumption for each employee, employers are able to gauge drivers' fuel efficiency and compare driver performance. Fleet managers can then focus any "green driver" training on staff who need it most.

Some firms also publish league tables and reward those who get the most miles for each gallon. With cards allocated to individual cars or drivers, it is also possible to pick up inconsistencies in fuel use, such as a driver who isn't supposed to use the card to pay for private mileage filling up a car up on Friday night and again on Monday morning. Or the driver who fills the car's tank twice in one day without doing any major mileage (suggesting he is using the card to put fuel in another vehicle).

Whyte says that while many see the financial attraction of things such as central billing and the easy allocation of fuel costs to specific cost centres, these are not the only advantages the cards offer. "The vast majority [of fuel cards] are only really used for central billing and accountancy reasons. Too many companies often ignore the operational benefits they can bring," he says.

And while accountants are often happy that they can account for every penny spent on fuel, too often they fail to look more broadly at whether the overall bill might be reduced, or whether there are patterns of fuel usage that are out of step with the needs of the business.

Overall, Whyte says it is important that people remember the cards are not in themselves a solution for better fuel management. "Fuels cards are a tool for better fuel and fleet management. You can only manage costs properly with intelligent intervention."

Fuel for thought: picking a provider

1. Make sure you fully understand your fleet's needs before you meet fuel card providers. There is plenty of fancy packaging around offerings, but smart customers know what they want upfront.

2. How much of the information supplied by the provider will you use? How much should you use? Understand your information needs and likely usage before measuring up what different providers
can offer.

3. Ask yourself how the fuel card will help you to drive down your overall bill as well as allowing you to allocate costs to the appropriate departments.

4. How well suited to your type of fleet are the various providers? 

5. Will you be allowing drivers to charge private mileage as well as business mileage and will you expect them to pay you back for private miles (usually the most tax-efficient approach)?

6. How good is the station network? And which products-diesel, petrol, other forecourt services-are covered by the fuel card?

7. How often will they want payment, what means of payment are available and how often will they provide reports and to what level of detail?

Electric dreams

The government has set aside £250m for low-carbon transport, a large chunk of which will go towards schemes to promote electric cars-vehicles that business secretary Lord Mandelson claims the public will "fall in love with" when they see their "speed and lack of noise". It's a view that's widely held in the motor industry as the world's carmakers develop electric models. Here, we look at five of the most interesting.
Chevrolet Volt      Available: 2011

Unveiled with a flourish last month, the Chevy Volt is GM's attempt to stake a claim as a leader in green vehicles. Its big advantage is that, when it hits the streets in 2011, the Volt will achieve 230mpg in an urban setting, which looks impressive. With a range of 80 to 100 miles, the downside of the big battery will be a predicted price of more than £30,000-out of the reach of many families.

Plug-in Prius      Available: 2010

Already the market-leading hybrid, Toyota's Prius is due to get a new lithium-ion battery next year, which will allow it to be used as a proper plug-in electric car. This means it will qualify under the government's scheme. Early predictions for the range and price of the new Prius-always two of the biggest variables-are 20 to 30 miles and less than £30,000.

Nissan Leaf      Available: 2010

Another vehicle powered by lithium-ion battery, the Leaf offers what Nissan says is "the most exciting, practical and stylish way" to own an electric car. This model has a range of 100 miles, and is claimed to have comparable performance to a 1.6-litre petrol engine. Charging takes 25 minutes (80 per cent charged) and there is a clever touch in the ability to control charging functions from your mobile phone.

Tesla Model S      Available: 2011

Sneaking up on the big manufacturers is specialist electric car firm Tesla. While its current vehicle is a Lotus-based, two-seater sports car, the manufacturer has plans for a five-seater saloon. The Model S will have an impressive range of up to 300 miles and a 45-minute Quick Charge. Able to carry five adults and two children, the model boasts gorgeous looks, sports car performance (0-60mph in 5.6 seconds) and practicality. It may just be worth an estimated £40,000 price tag.
Mini E     Available: 2009

About to be tested in field trials (or more accurately street trials) across the UK as part of a government-funded research project into all-electric vehicles, the Mini E has all the hallmarks of its conventionally powered stable mates, although the space demands of lithium-ion batteries mean it will seat only two. An estimated range of up to 150 miles (although 100 is more achievable), it has enough zip to do 0-60mph in 8.5 seconds and will start to appear on streets later this year.