Breaking finance and business news, tax information, jobs and more for finance directors and senior finance professionals.

Today, some companies still use outdated methods of paying for fuel, such as pay and reclaim. Asking employees and drivers to pay for their fuel, obtain (and not lose) receipts and reclaim the expenses puts unnecessary pressure on both the drivers and the company administrators or transport managers. In addition to be being a long-winded method of paying for fuel, this makes it very difficult for a business to monitor and control fuel expenditure. Using a company credit card is little better. Apart from providing a credit period, this method presents the same problems and lack of control as paying with cash.

There are alternatives. Oil companies, such as Esso, BP, Shell and TotalFinaElf, and third-party companies such as PHH, offer the small and medium-sized business an efficient, easy-to-use and cost-effective method for purchasing fuel and controlling costs.

The benefits of a fuel card are numerous. They offer a convenient and cashless method of payment. They reduce administration and provide valuable time saving with accounting. In addition, fuel card operators can provide vital management information that can be used to monitor and help control fleet costs. And the cards themselves can be tailored to the individual’s needs, helping to curb driver abuse of the card.

For company employees on the road, a fuel card can make life that little bit easier. With a nationwide network of conveniently located service stations, a driver can have the peace of mind of being able to refuel without worry. Furthermore, the fuel card can be used to purchase additional products such as lubes, carwash and other vehicle accessories as well as on the road essentials such as coffee and sandwiches!

But fuel cards do not just benefit the on-the-road employees. For the company fleet manager, fuel cards can take away the headache of administering fleet fuel costs and make the process easier and more efficient. The Esso Card offers a straightforward and easy application process that ensures you have your cards quickly, usually within seven working days of your application acceptance. You can apply online at www.essocard.co.uk or telephone 0800 626672 and speak to a friendly Esso Card representative. Once up and running, Esso Card will provide a single VAT invoice or multiple invoicing and payment points that can be used to track fleet costs.

Competitive credit terms enable the fleet manager to keep a tight control on the company cashflow. In addition to detailed invoices, comprehensive fleet management reports can be provided on request. Fleet management reports provide thorough information on your fuel costs enabling you to analyse your costs and spending patterns. To provide the fleet manager with control over expenditure, fuel cards can be tailored to the individual driver’s needs.

Fuel cards can be valid for a particular driver’s name or a particular vehicle registration and can restrict the products that can be purchased using the card from just one type of fuel through to additional vehicle products and up to most shop goods. And lastly, a card hot-listing service can help ensure that your fleet manager has optimum control over any potential card fraud. Replacements for lost or stolen cards can be supplied quickly to keep your drivers on the road.

With Esso Card you and your drivers have access to a national network of around 1,400 service stations, or with the Extended Network Card (with Shell) up to 2,500 service stations. Esso’s motorway service stations make up 30 per cent of the motorway network (or 45 per cent of the extended network). The Esso Pricewatch promise[1] (excluding motorway service stations) means that you can be assured of paying a price that is usually amongst the lowest of those service stations monitored under Pricewatch. Value added services enable you to use your Esso Card to pay for tolls, ferries and breakdown, and cards that can also be used in Europe (an additional fee may apply). Just as importantly, a friendly and efficient after sales and account management service is available to make sure that all your fuel card needs are met.

The Esso Card is ideal for the small and medium-sized business. Ian Woolcott from Hinton Rescue decided that his company could benefit from the use of fuel cards and he chose Esso. As a 24-hour breakdown and recovery service, his drivers need to be able to refuel at many different locations at all times of the day. After a quick and straightforward application process, he would not use any other means of payment than fuel cards: “I like the fact that I can talk to the same people if I have a query. This service really matters”.

References:

1. Esso normally monitors fuel prices of supermarkets within three miles and other service stations within one mile of participating Esso service stations. Prices will usually be among the lowest of those monitored.

(This article was originally published in Director of Finance 2004 edition)