When it comes to fuel cards, many people instinctively opt for supermarket fuel cards, assuming that this is where the savings are. However, as fuel prices fluctuate, the actual value of these cards is not always as clear-cut as it seems. Businesses, especially those running fleets or frequently on the road, need to be extra mindful of where their fuel savings come from. In fact, many are surprised to learn that supermarket fuel cards aren’t as cost-effective as they believe, particularly when compared to oil company fuel cards, which offer not just better prices but also other advantages that make them ideal for businesses. In this post, we’ll explore why an oil company fuel card, from the likes of Shell, BP, or Esso, is a more beneficial option than its supermarket counterpart.
The Supermarket Fuel Card Misconception
It’s easy to see why many believe that supermarket fuel cards are the best option. Supermarkets like Tesco, Asda, or Sainsbury’s have long marketed themselves as the place to go for the lowest-priced fuel. However, many don’t realise that while they may offer competitive prices to everyday consumers, this doesn’t always translate into savings when using a supermarket fuel card for businesses.
The main reason for this misconception is that supermarket fuel cards typically offer fuel at the pump price. In other words, when using these cards, businesses are still paying whatever the pump price happens to be on that particular day. Currently, supermarket fuel prices are averaging around £1.42 per litre. This means that regardless of any perceived convenience, businesses using supermarket cards aren’t necessarily getting a better deal on fuel costs, despite thinking otherwise.
The Real Savings with Oil Co Fuel Cards
On the other hand, Oil Co fuel cards – such as those from Shell, BP, and Esso – offer a far better value proposition for businesses. These cards can provide fuel at a discounted, fixed rate, which is typically below the pump price. At present, Shell, BP, and Esso fuel cards are priced at around £1.28 per litre, offering a savings of 14p per litre compared to supermarket fuel cards. This might seem like a small difference, but over time, and especially for businesses that rely heavily on travel, it adds up to significant savings.
Let’s break it down: If a business vehicle typically fills up with 50 litres of fuel per week, that’s a £7 saving each time compared to supermarket fuel prices. Over a year, assuming weekly refills, that amounts to £364 in savings per vehicle. Now, imagine you’re running a fleet of 10 vehicles – the savings quickly reach over £3,600 annually. That’s money that can be reinvested into the business, used for upgrades, or saved for future expenses.
Better Quality Fuel with Oil Companies
In addition to cost savings, the quality of the fuel from oil companies is often superior. Many drivers believe that fuel is the same wherever you buy it, but this isn’t entirely true. Shell, BP, and Esso all invest heavily in the development of advanced fuels, which often come with additives designed to clean engines and improve efficiency. Over time, using better quality fuel can lead to improved vehicle performance, better fuel efficiency, and even a longer lifespan for your vehicles.
While supermarket fuel is often seen as “good enough,” for businesses looking to keep their fleet in peak condition, the benefits of higher-quality fuel are a huge advantage. The cost of repairs and vehicle downtime can quickly offset any marginal savings you think you’re getting at the supermarket pump.
Convenience and Control for Businesses
Beyond the price and quality benefits, fuel cards, particularly those from major oil companies, offer a range of other features that make them far more convenient and useful for businesses than supermarket fuel cards.
1. Widespread Network Coverage: Shell, BP, and Esso have large, well-established networks of stations across the UK and Europe, making it easy for drivers to find a convenient location to refuel. With thousands of stations across the country, employees or drivers can refuel practically anywhere, making logistics simpler for businesses that operate across regions.
2. Expense Management and Reporting: One of the greatest benefits of using fuel cards is the ease of expense management. Many oil company fuel cards offer online portals or mobile apps that allow business owners to track fuel usage, receive detailed reports, and manage their accounts in real-time. This makes it easier to budget, monitor fuel consumption, and control expenses. For fleet managers, this transparency is invaluable, allowing them to spot inefficiencies or unauthorised purchases easily. And when this is managed through Driving Down we can stay on top of all the figures for you to make sure that you keep the best deals
3. Security Features: Fuel cards come with built-in security features, helping to prevent fraud or misuse. Many cards allow for restrictions on what type of purchases can be made with the card – fuel only, for example – and some even allow for PIN protection. This gives businesses peace of mind, knowing that their fuel budget is being used appropriately.
4. Cash Flow Benefits: With oil company fuel cards, businesses often receive one consolidated invoice for all fuel purchases made within a billing period. This reduces the need for petty cash, receipts, and reimbursements. Moreover, many fuel card providers offer credit terms, giving businesses a bit more flexibility with their cash flow, something that can be crucial for small and medium-sized enterprises (SMEs).
Why Supermarket Cards Fall Short
Supermarket fuel cards simply don’t offer the same level of service or savings. They are largely designed for consumer convenience rather than business utility. The fact that they only offer pump price, lack of widespread reporting features, and limited fuel quality make them far less appealing for business use.
If you’re a business owner or fleet manager, it’s time to reconsider your fuel strategy. The savings offered by oil company fuel cards can make a noticeable difference to your bottom line, and the added convenience, security, and fuel quality are benefits that far outweigh what supermarket cards can offer. The team at Driving Down can review you current spend and see where savings can be made – get in touch today
