Diesel prices could rise to record highs in the following year and most particularly in the next few months. Fleet drivers have already seen prices rising higher. The prices before Christmas started to steadily rise and they have not stopped. The cost of diesel rose by 4.5 pence per litre between December 19 and January 5. Petrol rose 5 pence per litre in the same amount of time. Rises like this can be difficult to afford.
Fuel retailers have to react to the market and sometimes they move slightly slower than the current market prices, but they do eventually catch up enough to start charging more at the pump in order to recoup their losses from suppliers. When the oil prices change it means there will be a change at the pump. When talks about fuel reserves running dry fuel will increase, which is unfortunate, and something we need to be aware of in the fleet industry.
Since there are many things one cannot change with regards to the fuel prices, it is imperative that a company management team do all they can to lower cost in any way possible. For instance a fuel card can be the way to lower costs. This product saves money at the pump for drivers, which means savings for your company.
Depending on the product you choose you may save 2 to 10 pence per litre at the pump. Fixed price cards will save you less as a discount option meaning 2 to 3 pence per litre; however, you may save more in the end if the price is fixed. Consider mortgages as an example. You always save more with a fixed interest rate because it is a constant value. The same may be said for the fixed price card, but only if you have a fair pump price. If the price is already extremely high on the card you may lose out even if it is fixed. This is something you have to evaluate along with examining non fixed prices with these cards.
Non fixed pricing on cards means the pump price will be discounted by a higher amount of pence, but you have to pay what the market is offering. If you obtain the card and the price is 4.5 pence higher and it lowers you are saving, but if it goes up you may not save as much as the original savings offered.
