Four key takeaways from Fleet Live 2024

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Last week, Mehma Bridgen (CCO), Gareth Perks (Sales and Marketing Director) and Rachael Cordell (Senior Sales Manager), attended Fleet Live 2024, the UK’s premier fleet management and mobility event. As well as learning the value of a good pair of sturdy shoes (next time, ladies!), the terrific trio immersed themselves in some of the latest trends impacting the fleet industry.

Here, they share their insight.

Electrification is the topic on everyone’s lips

“Electrification and sustainable transport were at the top of the agenda. Conversations with our customers often touch on sustainability – from our EV charge card to offsetting emissions – so it is undoubtedly something that keeps fleet managers awake at night. For more complex fleets, full electrification isn’t always possible, but Fleet Live reinforced that fleet managers face mounting pressure to adopt greener technologies and sustainable solutions. With the recent government announcement that it will reinstate the ban on the sale of new internal combustion engine (ICE) vehicles and the implications for car, van and truck fleets – it’s no surprise it is a hot topic.” Mehma

 

Technology is at the heart of fleet management

“As sales and marketing director, I am always keen to explore trends impacting the industry – especially if there’s a digital adoption angle. I’m new to fleet management, so was really interested to chat with colleagues from across the industry about how technology is influencing day-to-day operations. There seems to be a consensus that there’s a growing role for AI in optimising route planning and logistics, as well as enhancing driver safety, and supporting asset management by highlighting opportunities for predictive maintenance. Although The Fuel Store started out as a fuel card reseller, we’ve been expanding our products and services to provide tools such as telematics and Fuel AI and, as we look at expanding our portfolio of tools, it is exciting to see a growing understanding of how AI and data analytics tools can enhance decision-making in vehicle management, and enhance overall fleet performance​.” Gareth

 

Fleet managers have a growing remit

“Over my twenty years in fuel and fleet management roles, the remit of fleet managers has evolved hugely. The days of traditional vehicle management have been superseded by a far broader spectrum of responsibilities, including sustainability issues such as the transition to EV, compliance with ULEZ and CAZ zones; understanding and interpreting data from telematics systems; a growing emphasis on driver safety, including policies and training related to driver behaviour, fatigue management, and accident prevention; asset management and total cost of ownership for fleet vehicles; supply chain issues; regulatory compliance and much more. As the remit grows, suppliers to the industry have an exciting opportunity to make themselves indispensable partners that add real value to fleet managers by providing services and solutions that lessen the load.” Rachael

 

Women in fleet management

“Women have historically been underrepresented in senior roles within the fleet and wider UK transport industry, but this year’s event felt like a huge step forward. Chatting with colleagues from across the industry, the increased focus on supporting women in transport is having a positive ripple effect – some of the UK’s most respected fleet managers are women. As Rachael has alluded to, the role of fleet managers has changed significantly in recent years, and the vast array of skills now required lends itself well to a diverse mix and style of management. Women are making a huge contribution that will undoubtedly grow in the future. As a business founder, female leader and Mum to two girls, it’s fantastic to see!” Mehma

Fuel Price Pulse – 11th October

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Prices have risen this week, compared to the same time last week. Prices fluctuated throughout the week, with volatility driven, once again, by a combination of geopolitical events, economic concerns, and weather-related events.

With prices higher than last week, Robin, Customer Success Manager at The Fuel Store, shares his insights into the factors impacting fuel prices, including his predictions for fuel costs as we head into next week.

 

What determines fuel prices?

The price you pay for petrol and diesel at the pumps is governed by wholesale fuel prices. Wholesale prices are influenced by a range of factors, including supply, demand and pricing for crude oil, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government.

Factors influencing fuel pricing this week.

Middle-East tensions cause prices to rise

The week began with a significant rise in oil prices. Escalating tensions in the Middle East pushed the price of a barrel above $80 for the first time since August. There is growing concern that the conflict may continue to escalate – not only putting Iran’s oil production at risk – but creating further disruptions to regional supply.

Historically, geopolitical crises in oil-producing regions, particularly in the Middle East, tend to push prices upward as markets anticipate supply disruptions or heightened risks in transportation routes like the Strait of Hormuz.

Prices fall due to concerns over the Chinese economy

Mid-week, prices experienced a pullback due to renewed concerns over the health of China’s economy, the world’s second-largest consumer of oil. Despite recent speculation about Beijing introducing a major economic stimulus package, the absence of any substantial spending commitments led to disappointment among traders.

China’s economy is a key driver of global oil demand, and any indication of slowing growth or weaker economic policy initiatives can quickly reverse market sentiment.

Hurricane Milton impacts demand

By Thursday, prices stabilised and edged higher. Hurricane Milton, the fifth-most-intense Atlantic hurricane on record, caused widespread disruption in Florida. Around 25% of the fuel stations in the state ran out of gasoline, creating a sudden spike in demand for crude oil which pushed prices higher. Speculation of a fall in demand across the state in the aftermath further fuelled volatility.

Weather-related supply chain interruptions often lead to short-term spikes in fuel prices, as seen in this case.

Next week’s fuel prices

Looking ahead, we predict that prices will continue to rise next week. This is due to ongoing geopolitical concerns in the Middle East. Despite no immediate military retaliation from Israel as some had expected, the threat of escalation remains. Israeli Defense Minister Yoav Gallant has stated that the decision on a potential attack on Iran will rest with Prime Minister Benjamin Netanyahu and another member of the Security Cabinet, which leaves the market on edge. News breaking today (11th Oct) states that Gulf states are lobbying Washington to stop Israel from attacking Iran’s oil sites because they are concerned their own oil facilities could come under fire. Traders often respond preemptively to such geopolitical risks, fearing potential supply disruptions that could arise if the conflict spreads or intensifies.

In summary, this week’s market movement highlights the sensitivity of oil prices to a variety of external factors, from geopolitical tensions and economic data to natural disasters. While prices have fluctuated, the general trend remains upward, driven by fears of escalating conflicts and supply chain disruptions. These factors, along with underlying concerns about global economic health, suggest that volatility will persist in the coming weeks.

Businesses and drivers can reduce costs further by opting for a fuel card. In 2023, customers of The Fuel Store saved an average of 12 ppl off forecourt costs. 

Ready to find out how a fuel card can save you money? Speak to our team or explore our range of fuel cards here. 

 

 

 

The information provided in this post is for information only. It does not constitute financial advice. Pricing predictions are speculative and should not be relied upon for forecasting purposes. 

Fuel Price Pulse – 4th October

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Oil prices have risen above $76 a barrel this week, due to fears that supplies could be disrupted. However, prices remain lower than levels seen earlier this year, and well below the peak of $130 a barrel that followed Russia’s invasion of Ukraine in 2022.

 

With prices higher than last week, Robin, Revenue and Retention Manager at The Fuel Store, shares his insights into the factors impacting fuel prices, including his predictions for fuel costs as we head into next week. 

 

What determines fuel prices? 

The price you pay for petrol and diesel at the pumps is governed by wholesale fuel prices. Wholesale prices are influenced by a range of factors, including supply, demand and pricing for crude oil, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government. 

 

Factors influencing fuel prices this week: 

With prices higher this week than last, we explore the factors influencing recent price fluctuations: 

Middle East Tensions 

At the start of the week, oil prices were slightly lower, but concerns about potential conflicts in the Middle East heightened midweek. A dramatic escalation in hostilities between Iran and Israel further added to worries on Tuesday, when Iran launched a ballistic missile attack on Israel. 

Markets reacted with a sharp 3% rise in oil prices due to fears of further escalation. Investors are now concerned about Israel’s potential retaliation, especially targeting Iranian oil infrastructure. In an off-the-cuff statement, US President Joe Biden said that his administration has been “discussing” possible Israeli plans to attack Iran’s oil industry – triggering a further spike in oil prices. As the world’s 7th largest oil producer, any disruption to Iran’s oil supply is a significant concern for global fuel costs. 

OPEC production 

OPEC’s recent decision to halt its gradual increase in oil production has added another layer of uncertainty to the market. By constraining supply, OPEC is driving up prices amid growing global demand. Financial institutions had already anticipated a shift to $60 per barrel in the coming months, even before the latest geopolitical developments. This OPEC policy signals that supply could worsen if the geopolitical crisis leads to further disruptions.

5% rise in oil prices 

Prices have spiked by 5% since the beginning of the week – showing that the oil market is highly reactive to any news concerning potential supply chain disruptions. 

Next week’s fuel prices

We predict the market will trade higher next week. 

Overall, the combination of geopolitical risk, OPEC’s production constraints, and market anxiety is expected to keep fuel prices rising as the week progresses. 

Businesses and drivers can reduce costs further by opting for a fuel card. In 2023, customers of The Fuel Store saved an average of 12 ppl off forecourt costs. 

Ready to find out how a fuel card can save you money? Speak to our team or explore our range of fuel cards here. 

 

 

 

The information provided in this post is for information only. It does not constitute financial advice. Pricing predictions are speculative and should not be relied upon for forecasting purposes. 

Fuel Price Pulse – 27th September

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Robin, Revenue and Retention Manager at The Fuel Store, shares his insights into the factors impacting fuel prices, including his predictions for fuel costs as we head into next week. 

 

What determines fuel prices? 

The price you pay for petrol and diesel at the pumps is governed by wholesale fuel prices. Wholesale prices are influenced by a range of factors, including supply, demand and pricing for crude oil, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government. 

 

Factors impacting fuel prices this week

Oil prices went up by about 2% on Tuesday, reaching their highest level in three weeks. This increase was driven by China’s announcement of a major financial boost to its economy and worries that the growing conflict in the Middle East might disrupt oil supplies from the region.

 

Despite this initial rise, prices dropped slightly after it became clear that a hurricane expected to hit the major US oil-producing region was instead heading for Florida. Some offshore producers had evacuated platforms or closed rigs early in the week, as a precautionary measure. Some firms, including Shell, restored production as the storm forecasts shifted away from their offshore platforms.

 

News reports also showed a sharp drop in U.S. consumer confidence, the biggest in three years. U.S. consumer confidence is a strong indicator of future economic activity and demand for goods and services. A significant drop in consumer confidence can directly and indirectly reduce fuel demand, applying downward pressure on oil prices.

 

Crude oil inventories in the United States fell by 4.339 million barrels for the week ending September 20, with further drops expected – the fifth decline in six weeks. This decline in stored oil supplies has also influenced market dynamics.

 

Rising tensions in the Middle East, including an Israeli airstrike in Beirut, have shifted market sentiment away from the recent pessimism about oil prices. Concerns are also growing that the conflict could pull Iran, a key oil producer and OPEC member, into a conflict with Israel.

 

Meanwhile, a pending resolution to Libya’s central bank crisis looks set to restore significant oil supply. Delegates from Libya’s east and west have agreed on the steps and timeline for appointing leaders of the central bank, according to the United Nations. This deal could ease tensions over who controls the central bank and oil revenues, which have been causing a sharp drop in Libya’s oil production and exports in recent weeks. 

 

Oil prices fell by 3% on Thursday after a Financial Times report revealed that Saudi Arabia plans to abandon its unofficial goal of reaching $100 per barrel for crude. The report indicated that Saudi Arabia, along with OPEC and its allies, is preparing to increase oil output in December. Experts note that the planned production increase, adding about 180,000 barrels per day, could loosen the global oil supply balance, with speculation that Saudi Arabia might be entering a price war with other oil producers. This has caused uncertainty in the oil markets, which were already concerned about future oil supply and demand balances in 2025. Investor sentiment is low, reflecting worries about the potential instability in global oil markets.

 

Meanwhile, OPEC has raised its medium and long-term oil demand forecasts, citing growth in countries like India, Africa, and the Middle East and a slower shift to electric vehicles and cleaner fuels.

 

Next week’s fuel prices

 

We predict the market will be more stable going into next week. Businesses and drivers can reduce costs further by opting for a fuel card. In 2023, customers of The Fuel Store saved an average of 12 ppl off forecourt costs. 

Ready to find out how a fuel card can save you money? Speak to our team or explore our range of fuel cards here. 

 

 

 

The information provided in this post is for information only. It does not constitute financial advice. Pricing predictions are speculative and should not be relied upon for forecasting purposes. 

Fuel Price Pulse – 20th September

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News hit last week that fuel prices were at their lowest since October 2021. Over the last week, a US interest rate cut, Middle East tensions, declining global stockpiles and weak demand from China have all influenced the cost of crude oil and fuel pump prices.

Robin, Revenue and Retention Manager at The Fuel Store, shares his insights into the factors impacting fuel prices, including his predictions for fuel costs as we head into next week. 

 

What determines fuel prices? 

 

The price you pay for petrol and diesel at the pumps is governed by wholesale fuel prices. Wholesale prices are influenced by a range of factors, including supply, demand and pricing for crude oil, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government. 

 

Factors impacting fuel prices this week

 

The market has settled stable in comparison to last week.

 

On Monday, oil prices dipped slightly as traders reacted to Friday’s late losses. U.S. traders had sold off covering positions after news that refineries had sustained no serious damage from Storm Francine. However, a statement from the U.S. offshore energy regulator on Sunday reported that nearly a fifth of crude oil production output in U.S. Gulf of Mexico federal waters remained offline. While refineries were reported undamaged, these production outages are keeping supply tight, supporting prices.

On Tuesday morning, Oil prices remained relatively unchanged. However, by the afternoon, prices began to rise in anticipation of a possible 0.5% cut in US interest rates. As expected, Oil prices posted modest gains of more than 1% on Thursday, following a confirmed cut in U.S. interest rates.

Crude inventories in the U.S., the world’s top producer, fell to a one-year low last week, government data showed on Wednesday. Exports are expected to rebound in the coming week following disruptions from Storm Francine.

Declining global stockpiles have helped offset some of the demand concerns arising from weak consumption in China. However, China’s slowing economy continues to limit oil’s gains. The latest Chinese refinery output data was weaker than expected, falling to a 22-month low of 13.91m bpd. The most recent new car sales data from China shows that sales of “new energy vehicles” were higher than sales of ICE vehicles for a second month. As electric vehicle sales surge, driven largely by China, the impact on oil consumption will likely become even more pronounced.

Traders are also following developments in the Middle East, after thousands of pagers and radio devices exploded in two separate incidents in Lebanon – injuring thousands of people and killing at least 37.

 

Next week’s fuel prices

 

We predict the market will be more stable going into next week. Businesses and drivers can reduce costs further by opting for a fuel card. In 2023, customers of The Fuel Store saved an average of 12 ppl off forecourt costs. 

Ready to find out how a fuel card can save you money? Speak to our team or explore our range of fuel cards here. 

 

 

 

The information provided in this post is for information only. It does not constitute financial advice. Pricing predictions are speculative and should not be relied upon for forecasting purposes. 

The Fuel Store strengthens its leadership team with two new appointments

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The Fuel Store has strengthened its senior team with the appointment of Gareth Perks as Sales and Marketing Director, and Rachael Cordell as Senior Sales Manager. 

Based in Birmingham, The Fuel Store started life in 2016 as a fuel card retailer. Over the last eight years, the business has grown to offer unrivalled forecourt coverage and fleet management tools, including telematics solutions and AI-inspired tools that transform fleet data into actionable insights. Despite a sharp growth trajectory, The Fuel Store has stayed true to its core values as a family business that prides itself on excellent customer service. 

The two new appointments are key to delivering the next stage of The Fuel Store’s growth strategy, with a focus on expanding its fleet management product portfolio and improving market share through ongoing service excellence. 

 

Gareth Perks, Sales and Marketing Director 

As Sales and Marketing Director, Gareth is a strategic addition to The Fuel Store’s Senior Management team. An experienced sales and marketing leader, Gareth has a passion for transforming businesses through innovative customer experiences, multichannel marketing and establishing strong customer and partner relationships. In his new role, Gareth will be focused on driving the marketing and sales teams to deliver against The Fuel Store’s promise of Better Service, Better Pricing, Better Products. 

Speaking about his appointment, Gareth commented. “I’m very excited to join The Fuel Store and look forward to evolving the digital experience, improving customer journeys and growing our market share. I am committed to delivering a brand, product range and user experience that resonates with customers – objectives that align closely with The Fuel Store’s future growth plans.”

 

 

Rachael Cordell, Senior Sales Manager

 

With over 20 years of sales experience, Rachael has held senior business development and product innovation roles at downstream and fuel card businesses. Her extensive knowledge of the fuel and fleet industry and passion for customer service will be invaluable in her new role, which is focused on key account management, customer experience and sales leadership. 

Rachel added, “Having worked in the industry for many years, I’m excited to be part of an innovative and passionate team striving to deliver real differentiation in terms of product and service.”

 

 

Jamie Bridgen, Founder of The Fuel Store, commented: “I’m delighted to have appointed Rachael and Gareth to the team. They both have a wealth of leadership experience across industry, and a track record of driving growth in their previous roles. They will play a critical role in delivering against our mission to grow, innovate and provide excellent customer experience.”

Fuel Price Pulse – 13th September

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News hit this week that fuel prices are at their lowest since October 2021. Reduced wholesale fuel costs have been attributed to a lower oil price, together with a favourable Sterling to US dollar exchange rate.

With speculation around the fuel duty cut still looming large on the horizon, Robin, Revenue and Retention Manager at The Fuel Store, shares his insights into the factors that are impacting fuel prices, including his predictions for fuel costs as we head into next week. 

 

What determines fuel prices? 

The price you pay for petrol and diesel at the pumps is governed by wholesale fuel prices. Wholesale prices are influenced by a range of factors, including supply, demand and pricing for crude oil, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government. 

 

Factors impacting fuel prices this week

A number of factors are causing the market to trade lower this week, in comparison to this time last week. 

  • On Monday, prices rebounded in a corrective rise after last week’s losses, which intensified on Friday after the release of US payroll data. 
  • However, on Tuesday afternoon prices fell sharply when OPEC (Organisation of the Petroleum Exporting Countries) downgraded global demand growth forecasts for 2024. In its monthly oil report, the group revised demand growth to 2.03 million barrels per day from the previous forecast of 2.11 million barrels per day.
  • On Thursday, prices were also impacted by Tropical Storm Francine, which tore through off-shore oil-producing areas in the Gulf of Mexico. Around 40% of US crude oil production was hit, totaling 675,000 bpd, and reducing operations at six refineries. 
  • Crude exports have been hit by unrest in Libya, with oil exports falling around 81%, according to Kpler data, as the National Oil Corporation cancelled cargoes amid a crisis over control of Libya’s central bank and oil revenue.
  • Demand expectations remain dismal as both OPEC and the International Energy Agency this week lowered their demand growth forecasts, citing economic struggles in China, the world’s largest oil Importer.
  • The recent run of weaker Chinese economic data suggests that oil demand in the world’s second-largest economy may remain subdued for longer, while demand has been soft in other countries outside of China as well.
  • Oil prices are likely to keep falling, the head of the International Energy Agency has said, as producers continue to pump volumes that exceed global demand. 

Next week’s fuel prices

We predict the market will trade lower going into next week, resulting in lower prices at the pump. Businesses and drivers can reduce costs further by opting for a fuel card. In 2023, customers of The Fuel Store saved an average of 12 ppl off forecourt costs. 

Ready to find out how a fuel card can save you money? Speak to our team or explore our range of fuel cards here. 

Fuel Cards, VAT and HMRC

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If you’re familiar with The Fuel Store, then you’ll know that one of the things that we are proud of is the fact that our fuel cards can help make VAT claims simple – thanks to our HMRC-compliant invoices. Here, we explore what that means in practice, the basics of VAT when it comes to fuel, and how Fuel Store customers stand to benefit. 

 

Reclaiming VAT on fuel – the basics 

To reclaim VAT on business expenses, including fuel, you need to be a VAT-registered business. If your annual taxable turnover exceeds £85,000, VAT registration is mandatory. If it is below that figure, however, you can opt to register for VAT and claim VAT back on expenses. 

There are specific conditions and requirements for businesses to claim VAT on fuel bills. First and foremost, the fuel must be used for business purposes. In addition, businesses must keep detailed records of mileage, including dates, distances, and purposes of journeys, as well as VAT receipts for fuel purchases.

 

Simplifying HMRC compliance for fuel spend 

When managing a fleet, processing mileage claims and keeping track of VAT receipts can be an administrative headache. 

One of the simplest ways to minimise this admin is by supplying your drivers with a fuel card (more in our What is a Fuel Card blog). Every fuel card comes with free access to our online portal. As well as providing a breakdown of fuel spend – including which card was used, where, and when – the portal gives users access to HMRC-compliant fuel invoices.

Having access to HMRC-compliant invoices can take the pain out of VAT claims. No more keeping receipts. No more searching for lost ones. No more scanning and processing individual, screwed-up bits of paper. Not only that, but they are available for download from the portal, making it easier to comply with HMRC’s requirements when it comes to keeping receipts (as a rough guide, that’s five years for sole traders and six years for limited companies). 

As well as eliminating unnecessary admin, using the invoices associated with your business fuel cards can also help you save money by claiming back all of the VAT against your fuel costs. 

 

I’m a sole trader; can I reclaim fuel costs? 

Sole traders can claim fuel costs as part of their business expenses. Current mileage allowances are 45 pence per mile for the first 10,000 business miles and 25 pence per mile thereafter. To process a mileage claim, sole traders also need to provide receipts. 

Having a fuel card comes in handy here too; all invoices are stored in the portal, making it simple to access the paperwork to process your claim. In addition, there is no chance you can lose any receipts for fuel, which means you’ll always be able to reclaim any fuel VAT that’s owed to you.

 

What about personal mileage? 

You can make a claim for only the fuel you use for company purposes. For vehicles such as pool cars, commercial vehicles, or plant machinery, keeping an accurate mileage record is simple; all fuel will have been used for business purposes.

However, if a vehicle is used for both business and personal use, keeping accurate records becomes even more important. In this instance: 

  • The company can reimburse the employee at the advisory rate for business mileage and reclaim VAT on the payment. 
  • The company can cover the fuel cost, then charge the employee for private mileage, reclaiming VAT on the fuel cost minus the employee’s contribution.  
  • Any company paid fuel (which is not recharged) will be treated as a benefit in kind and, as such, must be reported on an employee’s P11D. 

However you approach personal mileage, having accurate records and access to HMRC compliant invoices helps to simplify the process. 

Find out more about our range of fuel cards here. 

New research highlights the financial benefits of electric fleets

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The Association for Renewable Energy and Clean Technology (REA) and the Energy Saving Trust (EST) have released a white paper revealing that operators can save approximately £1,500 per year for each light commercial vehicle (LCV) transitioned to electric, and around £3,500 per year for each HGV. 

These cost reductions are grounded in research showing that electric vehicles only require 25-30% of the energy needed by their diesel counterparts to achieve comparable performance. The Energy Saving Trust highlighted that these projected savings make the economic case for switching to electric vehicles even stronger, demonstrating both financial and efficiency advantages.

LCV and HGV charging costs summary (Energy Saving Trust). Based on a medium LCV driving 15,000 miles a year (60 miles per day, 250 days a year).

 

The REA and EST report provides a comprehensive guide to fleet electrification, offering step-by-step advice, showcasing cost-effectiveness and efficiency savings, and addressing current adoption barriers.

Speaking about the report, Future of Roads Minister Lilian Greenwood was quoted as saying,“ Our roads are undergoing a technological revolution, and fleets will play a big part. A cleaner greener transport network is a key priority for this government, which is why we have plug-in grants available for vans and trucks and programmes aimed at scaling up zero-emission HGVs, to decarbonise road freight.”

The benefits of switching to an EV fleet include reduced costs, corporate responsibility, regulatory compliance (including meeting Scope 1 and Scope 2 emissions), and staying ahead of government targets such as the UK Zero Emissions Vehicle (ZEV) Mandate. 

However, the cost of adoption remains a huge barrier.

 

Support and grants for EV adoption 

The plug-in van grant 

The plug-in van grant (PIVG) was launched in 2012 to help bridge the price gap between the cost of ultra-low emission vans and diesel vans. It was extended to trucks, also referred to as heavy goods vehicles (HGVs) in 2016. Only vehicles that have been approved by the government are eligible, and the level of discount depends on the type of vehicle. 

Small Van Plug in Grant: Small vans are eligible for up to £2,500 discount. These vans must be under 2,500kg, produce less than 50 g/km of CO2 and be able to travel at least 60 miles without any emissions from the tailpipe.

Large Van Plug in Grant: Large vans are eligible for a discount of up to £5,000. These vans must be between 2,500kg and 4,250kg in gross vehicle weight; produce less than 50 g/km of CO2 and be able to travel at least 60 miles without any emissions from the tailpipe.

Small Truck Plug in Grant (N2 Vehicles): Small trucks are eligible for a discount of up to £16,000. These trucks must be between 4,251kg and 12,000kg; have CO2 emissions of at least 50% less than the equivalent conventional Euro VI vehicle that can carry the same capacity, and be able to travel at least 60 miles without any emissions from the tailpipe.

Large Truck Plug in Grant (N3 Vehicles): Large trucks are eligible for a discount of up to £25,000. These trucks must be heavier than 12,000kg in gross vehicle weight; have CO2 emissions of at least 50% less than the equivalent conventional Euro VI vehicle that can carry the same capacity, and be able to travel at least 60 miles without any emissions from the tailpipe.

More information and lists of eligible vehicles can be found here. 

Electric vehicle infrastructure grant for staff and fleets

The grant provides small and medium-sized businesses money off the cost of installing electric vehicle (EV) chargepoints and supporting infrastructure for their staff and fleet vehicles. The grant covers 75% of the cost of the work, up to a maximum of £15,000. Businesses can apply for up to £350 per chargepoint socket installed, and up to £500 per parking space enabled with supporting infrastructure. You can receive up to 5 grants across 5 different sites.

More information can be found here. 

Considering the transition to an EV fleet? 

If you’re considering the transition to an electric fleet, this blog covers key considerations for fleet managers, from lower maintenance costs, VED, and congestion charges, to tax considerations. 

With EV infrastructure still relatively new, many fleet managers are also concerned about charger availability. The reality is, investment in infrastructure and battery technology has made range-anxiety a thing of the past. At The Fuel Store, we have teamed up with Paua, the UK’s #1 Electric Vehicle Fuel Card, to offer access to 50,000+ charge points in the UK – making charging simple, fast, and convenient. As well as an easy one-tap charging process, users of the Paua card can access an interactive charge point locator and map, allowing them to easily find the nearest EV charging stations for efficient recharging. Find out more about the Paua EV charge card. 

Want to learn more about our fleet management tools for EVs and mixed fleets? Speak to our team.

With fuel prices rising, how can businesses reduce the cost of running a fleet? 

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Fuel prices have hit the news again this week, with both The AA and RAC Fuelwatch reporting that forecourt prices have risen sharply. We explore the reasons behind the hike, the impact on business fleets that rely on fuel to operate, and our tips for reducing overall fuel spend. 

 

Why have fuel prices risen? 

The answer is not a simple one. And we should stress that we are not market analysts. However, there are lots of factors at play here – most of which are down to geopolitical uncertainty around the world. Here’s our top-level insight into what’s going on: 

At the crux of the recent price rise lies the high cost of brent crude oil, which has a direct impact on pump prices. The Russian invasion of Ukraine in 2022 sent commodity markets soaring, pushing up the wholesale prices of oil and gas. The ongoing conflict has resulted in sanctions and damage to Russia’s oil infrastructure, temporarily reducing Russia’s ability to produce (and export) products like diesel and gasoline. Analysts are also keeping an eye on the impact of conflicts in the Middle East. 

In March, the Organization of the Petroleum Exporting Countries (OPEC), which includes the world’s biggest oil-producing countries, announced that cuts in the production of oil would continue into Q2 of 2024. Since 2022, OPEC has made cuts in the production of crude oil of 5.86 million barrels a day. This volatility and uncertainty of supply has impacted crude oil markets and continues to push prices higher.

As we head towards the summer season, trends show an annual increase in demand as people travel more. That, combined with the weakening of the pound versus the US dollar has contributed to rising fuel prices in recent weeks.

 

Rising fuel costs and the effect on small businesses  

Business vehicles, and the cost of fuel, are already a major expense for many UK businesses. Against a backdrop of tight economic conditions, businesses face additional pressure due to the rising price of fuel.  

  • As fuel prices go up, the cost of doing business also increases. For businesses that heavily rely on transportation, such as delivery companies, manufacturers, and those who import and export goods, there’s a tough decision about whether to either absorb the cost or pass it on to customers. 
  • The cost of fuel also impacts consumer purchasing power. This can lead to a decrease in consumer demand, which can negatively impact the economy as a whole.
  • As well as the direct impact of rising transportation and lower consumer spending, rising fuel costs can impact the supply chain, with costs passed on to small businesses. 
  • Fuel costs can fluctuate daily, making it tough to forecast costs and manage cash flow. For small businesses, the ability to accurately forecast costs can make a huge difference when it comes to profitability in the longer term. 

 

How can businesses reduce the impact of rising fuel costs? 

 

Consider switching to a fuel card. 

One of the best ways to save money off forecourt fuel prices is to sign up for a company fuel card. The process is simple. Find the right provider. Sign up. Pay for fuel using your shiny new card, and reap the benefits of lower fuel costs and HMRC/VAT-compliant monthly invoicing.

Fuel savings

Most fuel cards will offer you savings vs forecourt prices. In 2023, customers of The Fuel Store saved an average of 12.5 pence per litre off the pump price – which can add up to a substantial saving for a small business or a large fleet. 

Improved cash flow

Perhaps not a direct reduction in the cost of fuel, but fuel cards can help improve your business cash flow. Monthly invoicing for fuel allows fleet managers to keep tabs on fuel spending, and budget for fuel costs, helping to manage cash flow more effectively.

Improved productivity

Again, a softer benefit, but they say time is money! Using a fuel card means less employee time is spent on processing expenses or recording fuel spend. With less time needed for admin, employees can spend their time on activities that add to the bottom line! 

 

Use telematics to reduce fuel costs 

When it comes to return on investment, the cost of implementing a telematics system covers itself quickly. 

Telematics systems can be used to gather and analyse data about driver locations, fuel consumption, RPM and braking habits. By understanding the data, fleet managers can build a picture of driver behaviours, identify areas for improvement, and significantly reduce fuel costs. 

By combining GPS tracking with live traffic data, drivers and fleet managers can optimise route planning. Accessing this data allows companies to schedule and reroute drivers more effectively, reducing idle time and fuel consumption. 

 

Switch your fleet to Electric Vehicles 

Ok, this isn’t a quick win like the other two, but it still deserves a mention. Making the switch to an all-electric (or mixed) fleet is a surefire way to avoid rising fuel costs. The initial outlay to switch to an electric fleet is undoubtedly a big one, but there are plenty of grants available which can reduce the costs significantly. The cost of powering the vehicles, as well as ongoing maintenance charges, is lower than your average diesel or petrol vehicle, too. 

 

Ready to save on fuel, and increase driver productivity? Speak to our team for help finding the right fleet management tools for your business.