Jul 12, 2022
As fuel prices rise, businesses are turning to company fuel cards to reduce ground travel costs.
The appeal of company fuel cards, or electric vehicle charge cards, is that they entitle companies to fuel discounts. And rather than employees using their own money before expensing it later, paying with a company fuel card sends the bill to the employer — making it easier to manage costs.
Yet, for all of their promise, turning to company fuel cards could only be a temporary solution to an ongoing problem.
A company fuel card is an alternative to using cash or a credit card at the petrol station.
The employee presents the fuel card at approved petrol stations as payment, and the employer receives a digital invoice. By setting spending limits, employers can keep fuel costs within budget, and employees never have to use their own money (and lose time claiming it back).
Companies with a fleet of vehicles can get multiple fuel cards and assign them to individuals or specific vehicles.
Your team will need electric vehicle (EV) charge cards to use as payment at charging stations.
Charge cards are the same as fuel cards — employers can set spending limits and assign them to specific employees or vehicles — but they cover charging costs rather than petrol or diesel.
Many providers now offer all-in-one fuel and charge cards. These can be used at both petrol stations and charging points — ideal if your company favours hybrid company cars over electric.
When filling up a company vehicle, a team member can take it to a petrol station and use the company fuel card as payment.
Businesses can assign company fuel cards to a specific team member or vehicle. And it’s possible to add spending limits for each card and restrict usage to certain days.
Email notifications will alert admins every time the card has been used.
Employees should take their fuel card (or the one assigned to the vehicle) when driving for business — this will make it easier for them to fill or charge the vehicle. Here’s how it works:
At some stations, it’s not possible to fuel or charge the car before paying.
As a self-employed individual, a company fuel or charge card can make it easier to separate business expenses from personal outgoings. They can also help you to save time, lower costs, and manage spending.
The benefits of using a company fuel card will vary depending on the provider and type of card.
Many offer the following:
These will vary depending on the provider, which means researching the best option for your business.
Paying to fill or charge a vehicle with a fuel card has benefits over other payment methods. However, you’ll also need to consider the potential downsides.
Fuel prices have been on the rise all over the world. Prices have increased by an average of 86% for diesel (B7) and 72% for petrol (E5) across Europe between 2020 and 2022.
While some company fuel cards offer rewards, discounts, and fuel at a lower rate, your business will still feel the impact of rising fuel prices.
Some fuel cards have additional monthly charges on top of the fuel costs. These hidden fees can be for each additional card you wish to give to an employee — which can add up for companies with a large fleet.
Handing out company fuel cards to your team can go one of two ways:
If your team is driving electric or hybrid vehicles, then this will help to reduce your company’s carbon footprint. However, investing in making your company’s fleet more efficient will prove costly.
One way to avoid the costs of owning, managing, and maintaining a fleet of company cars is by giving your team a car allowance. Yet, there’s no way to track whether this fuel is all used for business travel — which could not only mean higher fuel costs for the company but tax issues too.
It’s essential to consider both sides of the company car or car allowance debate before committing to one or the other.
When choosing a fuel card provider, it’s important to consider the following:
Based on where your team travels for business, make sure local, regional, and national stations accept the card.
One of the simplest decisions you’ll need to make is whether to get a fuel card or an EV charge card. A fuel card is necessary for petrol vehicles, while a charge card is the right choice for electric vehicles.
Moving away from owning a fleet of petrol and diesel cars is a priority for many companies as the importance of sustainability in business continues to grow. That means building a sustainable travel policy by turning to hybrid and electric vehicles. Not only will this come at a high cost, but you’ll also need to move to company charge cards from fuel cards.
Instead of committing to fuel cards for business, avoid paying for fuel altogether by renting a Bolt Drive vehicle with Bolt Business.
Bolt Drive is a convenient car rental service that provides your team with modern, safe, and efficient hybrid and electric vehicles. Vehicles are available from as little as €0.09 a minute — a fee that covers the fuel cost (as well as insurance and maintenance).
Using the Bolt app, your team can find a nearby vehicle, validate their driving licence, and get behind the wheel. And with Bolt Business, admins can allow employees to charge Bolt Drive trips to the company.
Drivers will find a fuel or charge card in the vehicle for use at any time, and we’ll cover the cost.
“We believe that sharing is better than owning. That’s why we chose the affordable and convenient Bolt Drive service instead of creating our own fleet.”
Harry Kanistik, Öko House OÜ co-founder
Company fuel and charge cards can make filling up a company car more affordable. Plus, setting spending and usage limits makes it easier to keep fuel costs within budget.
But as fuel and electricity prices continue to rise, discounts will only count for so much. In turn, you may find that your company has to keep increasing those spending limits.
The best way to fight back against rising fuel costs for your company is with the ground travel options available with Bolt Business.
Find out how these solutions helped La Gelateria Romana cut their travel costs by 25%.
