When thinking about fuel cards, there are two types of pricing – fixed and pump. So, what are the differences and pros and cons of each?
Weekly Fixed Fuel Price
This is the most common price plan for fuel card services and it offers a fixed weekly fuel price from participating stations. The benefit to this pricing plan is that there are significant savings to be made compared to the price found at the pump. Obviously the savings will vary depending on the pump price at that particular station. For help with BP Fuel Cards, you can find Info on BP Fuel cards at Fuel Card Services.
The benefits include:
- You’ll be notified weekly what the cost will be so this can be budgeted for.
- When managed effectively, this type of fuel card can represent good savings compared to the pump price.
- The price reflects the market so if prices drop, you’ll immediately feel the benefit.
The downsides:
- Savings can vary a lot depending on location.
- You might find it is only applicable for narrow network usage.
- Small marginal increases by the card company can add up over a year.
Pump Price
As the name suggests, this means fuel card users will pay the price displayed at the petrol pump. Whilst savings might not be made on the fuel, savings can be made through simplified processes.
The benefits include:
- Businesses will never pay more than pump price which can happen with weekly fixed fuel prices.
- Often a wider network accepts these fuel cards.
The downsides:
- There aren’t as many clear savings as can be had with a fixed price.
- Premium fuel use normally carries a surcharge.
