The Ultimate Fuel Card Guide
Fuel cards can save you money, improve your security, and slash your outgoings. Here’s how they
The Ultimate Fuel Card Guide
Fuel cards can save you money, improve your security, and slash your outgoings. Here’s how they can work for your business.
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The Ultimate Fuel Card Guide
Fuel cards can save you money, improve your security, and slash your outgoings. Here’s how they can work for your business.
We don’t need to tell you that over the last few years, things have been a bit weird when it comes to fuel prices. Global oil markets, taxation policies, and economic conditions have meant that prices are all over the place.
From 112p per litre in 2020 to 142p in 2025, fuel costs have been anything but predictable in recent years.
If your business relies on transportation, fuel will be one of your largest expenses. But what if there were a way to save money at the pump? Even the slightest reduction in cost per litre can have a significant impact on your bottom line.
That’s where fuel cards come in. They’re not just able to reduce your fuel expenses but also offer a range of other benefits. In this guide, we’ll cover everything you need to know about fuel cards and how they can help your business.Â
What Are Business Fuel Cards?
Fuel cards, sometimes known as fleet or petrol cards, are a payment method that allows businesses to manage their fuel costs more effectively. They look and work like a bank or store card but don’t have a chip. Instead, they have a magnetic strip and are activated by using a PIN code at the point of sale.
Have you ever bought someone a gift card because you forgot to get them a proper present for their birthday? Well, think of fuel cards as being the same as one of those. But instead of using it to buy a new jumper, a meal out, or something fun, it’s used to pay for fuel.
They allow your business to access discounted fuel rates. Most will also have corresponding software to monitor fuel usage, generate consolidated bills, and track spending.
How Do Fuel Cards Work?
Fuel cards work exactly like credit or debit cards, except they can only be used at petrol stations. The stations you can use your card at will be determined by your provider.
You then fill up your vehicle at the pump and pay like any other payment card. This is done by entering a PIN code assigned to the card or, in some cases, the driver themselves. You will then be invoiced for this at the agreed time frame (usually monthly or weekly), which you then pay via direct debit.Â
It’s really that simple.Â
Benefits of Fuel Cards for Businesses
1. Cost Savings
It doesn’t matter whether you’re a self-employed taxi driver or oversee a fleet of heavy-duty trucks travelling the country; fuel keeps your operations running. Fuel isn’t exactly the cheapest part of running a business. Some reports have found that fuel prices account for 30% of running a vehicle.Â
Fuel cards can offer significant savings compared to average pump prices. Some providers claim you can save up to 12p per litre by accessing cheaper rates. So, let’s see what that looks like for different vehicles.Â
Car Users: (45-litre tank, filling twice a week): Saving £540 per year
Van Drivers: (80-litre tank, filling twice a week): Saving £960 per year
7.5 Tonne Vehicles: (150-litre tank, filling twice a week): Saving £1,800 per year
HGV Drivers: (400-litre tank, filling twice a week): Saving £4,800 per year
Remember, these savings are per vehicle. If you’re in charge of a fleet of 10 HGVs and each driver has access to a fuel card, that’s £48,000 saved each year!Â
The average price for public liability insurance for taxi drivers in the UK can be up to £500 a year. Based on these savings, you can cover these costs with £40 left over. However, if you want to spend that £40, well that’s up to you. Treat yourself, you deserve it.Â
But the savings don’t stop there!Â
Real-time monitoring gives you access to live data about your fleet and fuel usage. If you assign cards to individual drivers, you can track precisely how much fuel each vehicle uses. If you notice anything unusual, it could point to an issue that needs to be addressed within the vehicle, helping you catch any small issues before they develop into major problems.Â
Fuel purchased using a fuel card is also exempt from tax. But be careful when factoring this into your budget, as this is only for vehicles strictly used for commercial purposes. You void your right to tax-free fuel if they’re used for business and personal use.
2. Simplified Administration
Whether it’s an entire team or you are filing your taxes on your own, switching to a fuel card is one of the best things you can do to streamline your administration processes.
First off, fuel cards allow you to consolidate all your invoices. If you manage multiple drivers, this is an absolute lifesaver because you’ll cut down on time sifting through different receipts. This also helps reduce the chance of any errors occurring.
Bookkeeping has never been easier. You will never have to go through the hassle of reimbursing drivers for fuel expenses again because they pay directly with a fuel card. Some providers will even come with the ability to integrate with accounting software to automate processing and save even more time.Â
Because of the ever-changing fuel prices, it can be challenging to forecast and budget accurately. Some providers will offer fixed weekly rates that protect you from daily price fluctuations and bring stability to predicting costs.
Is there anything worse than navigating HMRC?Â
Well, fuel cards can generate HMRC-compliant invoices and eliminate the need to collect individual receipts. This helps to simplify reclaiming VAT on fuel expenses, enhances cash flow, and guarantees you remain on the right side of HMRC’s stringent record-keeping requirements.
3. Increased Security
Because fuel cards are locked to petrol stations, there’s no chance that one of your drivers will sneak off for a swift pint and charge you for the luxury. You can also limit how much can be spent to curtail misuse. This can help reduce the chance of fraud and your businesses needlessly losing money.
PIN codes are assigned to each card and, in some cases, individual drivers. This accountability avoids any ‘he said, she said’ if there are any discrepancies on your fuel card bills.Â
If a fuel card is lost, you can easily block the card to prevent any unauthorised spending. If you don’t get there in time and someone has used your card, yes, it’s not ideal. But if you’ve placed a spending limit on it, it’s far better than a credit or debit card going missing.
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4. Data and Reporting Insights
Fuel cards aren’t just the physical cards themselves; many will also come with corresponding software that allows you to access valuable data. These include fuel consumption, driver behaviour and spending habits.Â
Digging deeper into the insights they generate can allow you to plan your routes more effectively. This can go a long way to keeping your budget healthy, with some estimates suggesting it can reduce your fleet running costs by up to 20%!
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5. Stay Compliant and Reduce Your Carbon Footprint
Breaching emissions regulations in the UK can mean you are fined up to £50,000 per offence. Some providers can track your carbon emissions, ensuring you adhere to these standards and avoid fines. UK Fuels’ cards even come with a carbon offsetting scheme, which helps to invest in environmentally friendly technology and local environmental schemes.
6. Reward Schemes
Who doesn’t love a good rewards scheme? Certain fuel card providers will have their own dedicated schemes you can benefit from. These can be anything from cashback to discounts in shops.Â
Here are a few that we’re fans of at Commercial Experts:Â
Shell Go+ Rewards
- Stamp-based system: 1 stamp per visit with £10+ fuel purchase or £2+ in-store spend.
- Fuel reward after 10 visits (specific reward unspecified).
- 10% discount on in-store items like food and Costa drinks.
- Occasional “spot” rewards for discounts on your next visit.
Texaco Star Rewards
- 1 point per litre of fuel purchased (Effectively, a 1p discount per litre).
- 300 points can be converted to money off Texaco fuel.
- 500 points can be converted to a Love2Shop voucher or charity donation.Â
BPMe Rewards
- 1 point per litre of regular fuel.Â
- 2 points per litre of premium fuel.
- 1 point per £1 spent in-store or on a car wash.
- 200 points = £1 off fuel (0.5p per litre).
- Points can be swapped for vouchers or converted to Avios.
Tesco Fuel Clubcard
- 1 Clubcard point (worth 1p) for every £2 spent on fuel.
- 1 Clubcard point for every £3 spent at Esso with Tesco Express.
Esso Nectar Rewards
- 1 Nectar point per litre of regular fuel.
- 2 Nectar points per litre of premium fuel.
- 300 Nectar points can be swapped for 5p off per litre.
- A Nectar point is valued at approximately 0.5p.
Morrisons More Fuel Loyalty
- 5 points (worth 0.5p) per litre of fuel.
- Asda Rewards
- 0.5% cashback on fuel spend (where available).
7. Improved Cashflow
Fuel cards give you access to interest-free credit. This means you can easily access more funds to keep your wheels turning when working on a tighter budget.
With some providers offering weekly invoicing, you can access cash sooner. This can help improve cash flow and turn monthly expenses into more manageable, smaller payments.
Industries That Can Benefit from Fuel Cards
Logistics and Haulage Companies
- Access to cheaper fuel rates for all vehiclesÂ
- Consolidated billing and VAT documentation
- Route optimisation
- Real-time data and emissions tracking
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Public Transport Operators
- Fixed weekly fuel prices improve budget forecasting
- Buses and transport fleets benefit from large-volume discounts
- Scheduled invoicing
Delivery and Courier Businesses
- Control over fuel expenses for local deliveries
- Prevent unauthorised purchasesÂ
- Easy reimbursements for contractors
Agriculture and Farming
- Access to cheaper fuel rates for machinery
- Easy VAT returns
- Monitor fuel usage and identify ways to optimise efficiency
Self-employed and Small Business Owners
- Simplified record-keeping
- HMRC-ready documentationÂ
- Access to cheaper fuel rates, improving your budget and cash flow
Construction and Trade Services
- Consolidated billing across multiple sitesÂ
- Monitor vehicles and machinery for fuel consumption trends
Electric Vehicle (EV) Fuel Cards
Electric vehicles (EVs) are becoming more commonplace across the UK, and businesses are now incorporating them into their fleets. Noticing this trend, many fuel card providers now include these to support the transition.Â
Some UK fuel card providers offer solutions that include access to extensive EV charging networks:
Shell Recharge Card: Provides access to over 25,000 public EV charge points across the UK, including 900 rapid charging points. This card also allows for traditional fuel purchases, making it suitable for mixed fleets.
BP Fuel & Charge Card: Offers connectivity to one of the UK’s largest charge networks, with approximately 40,000 charge points. The card facilitates both refuelling and recharging, streamlining expenses for diverse vehicle types.
Allstar Chargepass:Â Grants access to the UK’s largest and fastest electric charging network for businesses, covering over 75% of rapid and ultra-rapid chargers. It also supports refuelling at over 90% of fuel sites nationwide, providing a comprehensive solution for fleets.
How to Choose the Right Fuel Card for Your Business
There are a lot of providers out there, each with their own benefits. Like most things when it comes to your business, do a little digging to find the right fuel card for you. Here are a few things to remember when making your decision.Â
Fleet Sizes Â
How big is your operation? Some providers cater specifically to smaller businesses. They may offer no account or transaction fees, which can help those working on a smaller budget.Â
Others may offer you discounted rates for buying large quantities of fuel each week. No good for a self-employed taxi driver. Perfect for fleet managers in charge of numerous heavy-duty vehicles.
Some providers will have a minimum monthly spend. If you’re only driving a taxi part-time, make sure this doesn’t apply to you, or you will have to pay additional fees for not hitting your threshold.
Typical RoutesÂ
Not all fuel cards will work at every petrol station. Everything may look amazing on paper, with great rates, huge discounts, and an unrivalled cashback scheme. But if they only work at one type of petrol station, and there’s none of them on your route, they’re pointless.
If you’re unsure, some searching online will tell you the most common petrol stations on your route. The more stations you can use your card at, the better!Â
Transparent PricingÂ
Before signing up, make sure that you have all of their fees easily accessible. Ideally, they’d be in some sort of table or list format like we used earlier in the article. This way you can easily see the cost, how frequently you have to pay them, and how they’re paid.Â
If you’re still not clear about all the different fees you’re paying by the time you get to sign on the dotted line, it’s time to find someone else.Â
Customer ServiceÂ
Everything may look rosy on the surface, but what happens if things go wrong? Incorrect billing, lost cards, and cards being declined at authorised stations are all possibilities you may encounter, but how will your provider resolve them?Â
Checking out sites like Trustpilot can give you a good indication of how good its customer service is. One or two poor reviews are to be expected. But if you see multiple ones mentioning the same thing, then this is something you should take notice of.Â
Additional FeaturesÂ
Reporting tools, rewards plans, and increased security features. If these things are important to you, then make sure your provider offers them to the standard you expect.Â
Fuel TypesÂ
Some cards are locked to a specific type of fuel, while others will allow you to mix and match. If you oversee a diverse fleet that relies on different fuel types, ensure the card you sign up for covers this.Â
Eligibility CriteriaÂ
Don’t be surprised if you’re subject to a credit check and proof of business operations during your application process. You may have to opt for a pre-paid fuel card if you have poor credit or limited credit history. This means you will load your funds onto the card first instead of paying after use.
EV Compatibility
If you run a mixed fleet or fully EV, then make sure that your provider caters for these. As we mentioned with your routes earlier, ensure that there are authorised charging stations for you to take advantage of.
How Can I Get a Fuel Card For My Business?
Now that you’re a fuel card expert, it’s time to find the best one. Luckily, we’ve made it super simple to get started.Â
All you have to do is answer some basic questions about your business, and then, using this information, we will provide you with a range of free fuel card quotes tailored to your specific business needs.
Just answer the question below, follow the prompts, and you’ll be comparing the best fuel card deals in no time!
FAQs
What is a fuel card?
A fuel card is a payment card that enables businesses to manage fuel expenses for their vehicle fleets. It allows drivers to purchase fuel and, in some cases, vehicle-related services, with transactions tracked for monitoring and reporting purposes.
Can anyone get a fuel card?
Fuel cards are typically issued to businesses and organisations; eligibility often depends on creditworthiness and fuel consumption levels. While primarily designed for business use, some providers may offer options for individual consumers.
How do fuel cards work?
Fuel cards function similarly to credit or debit cards but are designated for fuel purchases and related expenses. Drivers use them at participating fuel stations, and businesses receive detailed reports on fuel usage, aiding in expense management and budgeting.
Are fuel cards a tax benefit?
In the UK, if a company fuel card is used for personal fuel expenses, it is not considered a taxable benefit. Employers must report this to HMRC and may be liable for National Insurance contributions on the value of the benefit.
