Fuel cards vs  buying fuel in bulk

Fuel cards and bulk-buying are two methods to secure a fuel supply for your operations. Fuel cards have become popular for businesses with high mileage, but are they the best option? This article will explore the pros and cons of bulk fuel storage and fuel cards, helping you determine which option suits your operation.

What is a fuel card?

Fuel cards, often called fleet cards, are primarily used by companies that engage in extensive driving activities. This includes industries such as delivery, logistics, sales, or any business where employees spend a lot of time on the road. 

A fuel card looks and acts like a debit or credit card and is designed for purchasing fuel at filling stations. Using fuel cards can provide lower fuel prices and a convenient way to monitor and manage your fleet’s expenses.

How do fuel cards work?

After filling up at a fuel station, you’ll be asked to provide your vehicle’s registration number. You may also be asked if you want to record the mileage when paying. This security measure ensures that the card is used appropriately and for the correct vehicle. After completing the transaction, you will receive a receipt for swiping the card and signing the payment. 

What is bulk fuel?

Bulk fuel is stored in a central location for commercial use. While there is no strict definition for “bulk fuel,” it typically involves amounts greater than 200 litres. Fuel can be stored above ground and below ground. Find out more about the benefits of bulk fuel storage.   

Bulk buying fuel provides a secure and reliable fuel supply, shielding businesses from fluctuations in price and availability. For many companies, purchasing fuel in bulk is a more secure and practical solution. It allows for careful usage and safe storage monitoring and enables businesses to budget and forecast accurately.

Benefits of fuel cards vs bulk fuel tanks

Fuel cards can be an attractive option for those in charge of a fleet of vehicles, but they also come with significant drawbacks, particularly when compared with bulk fuel storage.  We take a look at the advantages and disadvantages in more detail.

Savings

Some fuel cards offer discounts on fuel purchases, leading to significant savings for companies over time or at scale. However, there are important caveats to consider. Many cards may provide an appealing introductory rate, but this can change later. Equally, fluctuating fuel prices can make fuel very difficult to project, and buying fuel on a use-as basis means that increased prices can inflate budgets.

In addition, fuel cards often come with added fees or charges that must be factored into your budget. These fees can vary from one card to another, including a flat annual fee or a charge per litre. 

Bulk fuel storage allows you to stockpile fuel, taking advantage of lower prices and ensuring a steady supply at a fixed rate. This approach enables companies to purchase fuel in bulk when prices are low, securing their supply at the best price. 

Ultimately, if your business relies on fuel and you don’t have your own fuel supply, you will be vulnerable to the ever-changing fuel prices. 

Security

Fuel cards are given as a means to prevent theft and fraud. Since they can only be used to purchase fuel, they reduce the risk of using cash or credit/debit cards. The fleet manager can monitor their usage, adding another layer of security. 

However, while fuel cards can only be used to buy fuel, theft can still occur. Employees can fill up personal vehicles or pass the cards on to friends and family. Tracking these unauthorised uses within the allocated fuel consumption allowances is challenging.

Western Global fuel tanks offer features that enhance security, such as a lockable equipment cabinet and bunded construction, ensuring reliable protection for your fuel. Find out more about how a Western Global tank can help protect your fuel.

Convenience

Fuel cards provide drivers with a more convenient way to refuel. They can carry a fuel card instead of worrying about carrying cash or company credit cards.

However, there can be limits on where they can be used. Some fuel cards are only valid at certain stations or locations. They may also have minimum or maximum limits on the fuel you can use each month. This restricts their use and the practicality for many businesses.

Depending on the operation of your business, on-site fuel storage offers unbeatable efficiency. You can refuel directly on-site instead of travelling to fuel stations every time a vehicle or piece of equipment needs refuelling. This reduces interruptions to work.

Bulk fuel storage also means you can avoid shutdowns. Wider fuel distribution issues or panic-buying can cause shortages or filling stations to run dry. Having your own supply means work can keep going regardless of the external fuel situation.

Efficiency

A fuel card records all purchases in one place through itemised HMRC-compliant invoicing. This can offer a more streamlined and efficient system than collecting receipts and tracking against cash or card spending.

While fuel cards allow you to compare usage with costs directly, they still rely on a third-party system, making you dependent on their accuracy and reliability. You can monitor your usage more directly and accurately using your own fuel supply. This helps reduce downtime and keeps your operations running longer. These are just a few benefits. Find out more about why this is so important.

Western Global: Your bulk fuel storage solution

At Western Global, we have the right tank to meet your needs, regardless of the size of your business.

Our EnviroCube is the ideal bulk tank for fleet fuel systems and depot storage. These tanks offer superior security and range in size from 10,000 to around 50,000 litres. EnviroCube tanks can also become complete fuel management systems, providing total control over fuel safety and accountability. Unlike fuel cards, which can be lost or misused, fuel management systems offer enhanced security features, real-time monitoring, and detailed reporting, ensuring that every drop of fuel is accounted for and used efficiently. You can learn about fuel management systems here: Fuel Management Systems – Why Construction Firms Need One.

For smaller capacities, our EnviroBulka tanks are designed to store fuel for long periods. 

Find the perfect tank for your operations in our selection. Click to browse the range.