UK fuel card usage at highest ever levels

New reports show that fuel card usage amongst UK businesses is at its highest ever levels, with it now being a £7billion a year sector. Fuel expenditure is one of the largest expenses for any size company and more firms than ever are seeking ways to keep fuel costs under control.

What is driving growth in fuel card usage is a wave of new technology in the form of easy to use telematics software that tracks payments quickly and easily that also allows you to track expenses for HMRC fuel mileage payments compliantly. However, most companies feel that the primary benefits of fuel cards remain the fuel price discounts and the coverage of stations where they are accepted.

Fuel card growth goes global

Europe dominates the global fuel card market accounting for 28% of all market share, and the UK is a leading sector. In 2016, over 156,000 new cards were issued, totalling 3.3 million fuel cards in active circulation in the UK. Of those cards, 82.0% will be held by fleet vehicles and 18.0% by CRT vehicles.

Total fleet card volumes rose by 3.8% to 3,686m litres continuing an upward trend that started in 2013. That growth is also the same in the rest of the world. The global fuel cards market was valued at almost $267 billion in 2016 and is expected to reach around $401 billion by 2021.

Fuel card features

The growth of fuel card usage is also driven by the added value features that most fuel cards now contain.

Many fuel card providers offer a range of features apart from purchasing fuels such as payment of tolls, parking and reporting tools; access to real-time data; prediction of expenses; VAT recovery; breakdown assistance; payments for lubricants, vehicle accessories, car washes, food and refreshments.

Such value-added services help fleet managers minimise fraudulent claims, improve fuel management, and drive the growth of the fuel cards market. Furthermore, suppliers also send out latest news, offers and updates on fuel prices to enable customers to obtain more value from their cards.

The availability of real-time data in telematics also enables fleet managers and drivers to receive regular updates on fuel prices at locations throughout the country, helping buyers to identify outlets that offer the lowest possible fuel prices as they drive.

Fuel prices rise

Over the last two years, we have seen a gradual increase in UK fuel prices, which is another important factor leading to a rise in fuel card usage. Since January 2016, the price of crude oil has risen consistently, and it is now around at the $60-65 per barrel mark. The crude oil market price directly affects the price of fuel that we pay in forecourts. There are several factors behind the price increase, but the main reason is due to a controlled reduction in the global production of oil, agreed by OPEC, Russia and the USA.

With trends looking like the production of oil will fall, and the price of oil continues to rise, it looks there will be a slow but continued rise. Unless something drastic happens, fuel prices are most likely going to continue to rise. This is why it’s more important than ever for businesses to look at ways to ensure fuel costs are lowered, such as via fuel cards.

Fuel card technology trends

The good news is that the future for the fuel card industry looks as promising as ever if they can tackle one of its more fundamental problems: fossil fuels running out by 2050!

Payment for Electric Vehicles (EVs) is at its formative stages, but it’s only a question of time before someone launches a fuel card for fleets of EV cars or trucks.The market for electric fleets is non-existent at the moment, but Tesla has already had so many advance order for their electric trucks that they have a three-year waiting list.

Other forms of technology are soon to reach fruition in the fuel cards market, improvements in telematics technology appear to be the greatest real benefits.

Angad Singh, a procurement specialist at Technavio, “Suppliers in the market are increasingly embedding telematics interface and reporting facilities in fuel cards to improve the efficiency of fleet management. This brings about the transparency of fuel spend across the fleet as well as helps improve driver behaviour with regard to fuel spending.”

Fuel card feedback

Fuel Card Services is one of the UK’s leading providers of fuel cards. There are thousands of products out there, so finding the right ones for your business can often be hard. Fuel Card Services provides a free and impartial advice service to PetrolPrices members, where after a short consultation they can advise on the best deals to suit your business and staff.

Here are some other companies that have worked with Fuel Card Service and their feedback:
“Cost management is essential, and Fuel Card Services offers us much more than our former supplier. We now pay significantly less than the pump prices we were previously charged and no longer have to pay a transaction fee every time that a driver refuels. If we ever need anything, I always call our dedicated account manager, Rachel, and get fast, friendly help. Talking to the same person every time is so much better than joining a call centre queue to talk to a random stranger.” Jane Dodd, Accounts Director, Barwit Control Systems

“The continuing cost savings are significant, and the excellent personal service makes a real difference. For a successful and growing organisation, in a dynamic industry, the ability to make changes quickly and easily is important. Fuel Card Services is better [than our previous supplier] in every way, from the personal service to the real cost savings.” Fred Joseph, Assistant Fleet Manager, JCDecaux

“Our Shell fuel cards mean that we regularly pay up to 4p per litre less than pump prices, regardless of where the drivers refuel. As a bonus, being notified each Friday of our fixed diesel price for the coming week is a real help in cash flow planning. Even better, we do not have to factor in the transaction charges and network fees that other suppliers charge.” -Martin Drury, Managing Director, Sandwich Express

PetrolPrices fuel card offer

PetrolPrices customers get their first-year fee free with Fuel Card Services, equating to a saving of around £9 per driver. Once you have filled in a short form that takes 1 minute, an adviser will call you to discuss your specific needs and provide you with a free quote for your business. Just click on start now to begin the form.

How will the new lane rental scheme affect road users?

Ask any regular driver what irritates them the most, and top of most lists will be roadworks. We all know that they are necessary, but their timing is often terrible, seem to last forever and cause colossal congestion. Now, a new lane rental scheme is being discussed that could change the roadworks system forever – but how will it affect road users?

The lane rental scheme

The scheme has already been trialled in parts of London and Kent, with some success, and looks set to be rolled out nationwide. Utility companies were charged up to £2,500 a day for digging up busy roads at peak times. In most cases, the rates were between £800-2,500 in London and between £300-2,000 in Kent. The scheme also saw TfL raise some £4.8 million and Kent County Council raised £1.1 million, after costs, during the trial.

The idea is to incentivise companies to do the work outside the rush hour, to work on quieter roads and to collaborate with other companies to complete a set of roadworks in one go. Rather than each digging up the road, closing it, repairing it and then another company comes along and digs up the same stretch of road a week later; the idea is that they can ‘share’ the roadworks to get more done at once.

© Copyright Highways England and licensed for reuse under this Creative Commons Licence.

Positive reaction

Transport Minister, Jo Johnson, said that drivers often get frustrated at roadworks, especially when they are suffering delays, yet it appears as if no-one is doing anything about it. The idea behind the lane rental system is because companies are paying for the time they have the lane blocked off, they will work quickly and minimalize the disruption to drivers.

Head of Road Policy at the RAC, Nicholas Lyes, said that the announcement is ‘very welcome’ and that trials have shown that some of the worst congestion in London has been halved when the lane rental scheme was in use. Motorists know that congestion and roadworks are necessary, he added, but unnecessary queues and length of roadworks are something everyone finds very frustrating.

The scheme still needs the official sign off from the Transport Secretary, Chris Grayling, then the Department of Transport will start to draft guidelines for local authorities with regards to the bidding process.

Against the scheme

Street Works UK, who represent the utility companies and their contractors, was a little less enthusiastic about the idea, although this might not come as a surprise. They cited their own research that showed that while behaviour change could lead to improved outcomes, and less congestion, there was less evidence that it was directly due to the lane rental scheme.

Their view was that utilities are delivering the infrastructure that the UK needs to drive productivity, economic growth and deliver on government priorities, and the scheme isn’t the best solution to help with this. But they also said they would go along with it, implying that they realise how much hassle roadworks cause all road users.

In the figures

Figures show that utility companies have worked together over 600 times, since the trial started in 2015, versus just 100 times before that. It shows that the scheme can inspire cooperation where none was previously seen. There have been efforts to deal with utility roadworks for many years, going back to the New Roads and Streetworks Act of 1991, but few have had any real progress which is why there is enthusiasm for the idea of the new scheme.

Around 2.5 million roadworks are carried out each year across the country, costing the economy more than £4 billion – mostly in late employees, delayed deliveries and other results from congestion. Local authorities already have powers to manage and coordinate street works, but some say they aren’t using them effectively. The aim is that the new scheme could start to roll out next year and could help drivers around the country have a smoother ride to work.

This lane rental looks to be a blessing for all road users, as it will hopefully ease up congestion in some of the busier roads in the UK. However, it will no doubt come as a curse on utility companies as they have to allocate funds to be able to carry out repairs.

What are the road works like near you? How will the lane rental scheme help you? Let us know in the comments below

Cash-strapped councils to fine for minor motoring offences

Local councils, strapped for cash, are seeking new ways to generate money – by slapping fines on motorists for minor offences. West Midlands mayor, Andy Street, has written to the government to change regulations and give local authorities the power to fine drivers for a range of minor offences, currently in the hands of the police outside London.

Costly mistakes

Councils want to be able to punish drivers for violations that include stopping in box junctions, illegal U-turns and stopping in cycle boxes at traffic lights. Those in favour say that councils are better equipped to find and track down offenders, and then collect the fines, rather than placing the burden on the police, who are facing a shortage of road police officers at the moment.

However, campaigners are concerned that local authorities are merely trying to squeeze more money out of drivers to deal with the problems they are having with their budgets. Currently, everywhere apart from London and Cardiff see ‘moving traffic restrictions’ handled by the police except for bus lanes. The Local Government Association (LGA) and the West Midlands mayor are among those campaigning for a change and broader powers.

Increasing income

The LGA wants to see more cameras at box junctions, junctions, and cycle lanes to create revenue that would go back into the road network. They also say they are losing money due to cuts in road traffic officer numbers, meaning people are getting away with more than they did before.

The AA has raised concerns that councils would issue penalties to raise cash to fill holes in their budgets. They described the record of enforcement for some councils as ‘atrocious’ including the use of signs and road markings mean that drivers are often penalised for being in the wrong position due to a lack of understanding of the road layout. An example came from Preston where bus lane restrictions were re-enforced and generated £115,000 in fines in a single week.

Police powers

Roads minister, Mr Jesse Norman, confirmed that Parliament had received a written question from the LGA, which represents some 18 local authorities and the West Midlands Combined Authority.
The letter called for powers for councils, under the Traffic Management Act 2004, based on the efforts to ‘manage traffic contraventions and reduce congestion’ with authorities also raising the issue at regular engagement meetings.

However, Mr Norman rejected the pleas, saying that the necessary powers to act where needed were already in place and that the government had no plans to change the legislation. LGA spokesman, Martin Tett, said that the organisation would continue to press for reform claiming that it would allow councils to ‘tackle impatient drivers who break the law and put others at risk’ with the aim of shaving seconds off their journey.

Christmas gloom

An example of councils making income from drivers committing minor infringements came about on Christmas Day – the one day of the year when public transport does not run, and many drivers think it is okay to use bus lanes.

Sheffield was one of the worst with 141 drivers receiving a fine of £30 which increased to £60 if they did not pay it within 14 days. Leicester City Council fined another 46 motorists for using a single stretch of a bus lane.

Perhaps the worst story was Lee Williamson who pulled over to give some clothes and food to a homeless man on Christmas Day – and received a £70 fine from the council for his charity. The penalty has since been revoked after a huge public outcry.

Surprisingly expensive

If the LGA do get their way, the cost of such errors can be extortionate for drivers. For example, stopping in a yellow box if you are not turning right, can cost you £70 outside London and up to £130 within the capital. A bus lane infringement can cost you up to £90, if you do not pay within 28 days of receiving the notice, meaning drivers could be seeing more and more letters coming through the door demanding money if the LGA get their way.

Overall, drivers in Britian probably get away with a fair few minor motoring offences

Do you think that the LGA should be dealing with minor motoring offences? What side do you stand on? Let us know in the comments below

Zebra Fuel: Delivering fuel directly to your car

In the digital age, you can order pretty much anything online to be sent to your home, but one exception has always been ordering fuel for your car parked at home or work. Well, that has now all changed with the launch of Zebra Fuel.

Zebra Fuel is a digital petrol station, delivering fuel directly to your car when you need it. Just log into the app, and with three clicks you can set a time for a specialist driver to come and give you fuel, while you carry on with your day.

The service has launched in South West London, regarded as an ideal location due to petrol stations closing down replaced by housing, road congestion getting to and from a station as well as sacrificing a precious parking space to fill up only to find it full when you come back. The convenience of a service that comes and fills up your parked car is ideally suited to London.

A Zebra Fuel co-founder revealed the experience that prompted him to start the company.

“My moment of clarity came when I was driving in Central London one day when I ran out of fuel. I turned on WAZE, found the nearest petrol station which was on Park Lane, and somehow crawled there on fumes. So I filled up my car, and it came to £76. (My car usually costs £60-£65 to fill.)

I thought the meter on the pump was faulty. The cashier said: ‘No, this is one of the most expensive petrol stations in the UK’ I found myself asking can’t we strip out the costs and inefficiencies of a petrol station and have the fuel come directly to us? That was the moment Zebra Fuel was born.

Zebra Fuel is solving one of the highest pain points in daily life: There is not one person who enjoys filling up their car at a petrol station. It is slow, unpleasant, expensive, dirty and petrol stations can be dangerous places at night. Our customer retention rate is close to 70%. People and businesses are not going back to petrol stations once they start using us.”

History of on-demand fuel

Our world has become a world where people are starting to prefer convenience over experience. While some people may still enjoy the experience of going to fill up, some simply may be too busy and find time increasingly more difficult to allocate, hence the introduction of the on-demand fuel industry.

In 2012, a company called FuelMe was founded in Los Angeles delivering fuel to people who did not have time to fill up at petrol stations. A few years later several brands launched offering the same service in different parts of America, such as Filld.co in San Francisco and Booster Fuels in Denver.

Zebra Fuel is the first digital petrol station in the UK, currently focused on London only, but it is expected that this will be the beginning of a new wave of brands that deliver the same service, in much the same way that UBER changed the way people ordering a taxi across the UK.

Why is it happening now?

The fuel retail market is likely to undergo many changes in the coming years, with a changing economic climate, a government push towards electric and new fuel pricing strategies, the next 20 years leading up to the planned petrol/diesel ban of 2040 will no doubt be hard. However, we may begin to see a decline in traditional petrol stations sooner than some think and a rebirth of the way that people buy fuel will change.

For example, we are likely to see the rise of intraday pricing, i.e. where the price fluctuates through the course of the day, in the UK allowing more price flexibility at the forecourt, which is a concept already adopted by some on the continent. In Germany prices at one station can change ten times in a day.

Disruption in the petrol retail market through electric, driverless and connected cars, intra day pricing and on-demand fuel brands like Zebra Fuel are going to mean a lot of change in the next five years, and most of it is beneficial to the consumer.

Key benefits of Zebra Fuel

Zebra Fuel delivers fuel to your vehicle when you choose. You just go through a short process on the app and set a time, and you get your car filled up without having to worry about it. By checking the app, you can see the van and when it is going to arrive and fill up. Zebra Fuel also does deliveries throughout the night, so you can wake up in the morning and drive straight to work on a full tank!

Zebra Fuel is based in the heart of London, allowing driving commuters to fill up during their working day without having worry about getting fuel at rush hour, or when they want to spend time with their family.

The whole process happens on an app which remembers you and your vehicle, so no need to use a computer and having to worry about it affecting your work. The app takes less than 5 minutes to go through so can be done on a lunch or coffee break.

Zebra Fuel is for both consumers and businesses, so if you need to fill up a fleet of cars, or just your own, no need to worry just let Zebra Fuel handle it! At the moment you can only get diesel, but Zebra Fuel is working on petrol and electric charge options that will be live soon.

The prices are low, probably lower than your average cost per litre! All that comes on top of that is a small delivery fee, which is a less than the total savings of the fuel cost.

So why Diesel and London only?

A spokesman for Zebra Fuel told us “We are testing the market with diesel deliveries – from a regulatory perspective this made the most sense. However, we will be delivering other types of fuel very soon. Electric and Petrol are coming, watch this space!”

Zebra Fuel has also confirmed that they plan to launch ZebraBio, a Zebra Fuel exclusive eco-friendly clean diesel that will help to reduce emissions. They are beta testing petrol and electric and plan to bring out hydrogen when the technology becomes more widespread.

Zebra Fuel also told us “We picked London for our launch because so many petrol stations have been and still are closing down all over the city, causing additional congestion. Zebra’s service reduces road congestion: When you take a driver who’s going to the petrol station in central London, they are adding two trips to the total number of trips made in the city that day.

They are probably driving out of his way to the petrol station; they are queuing up, almost certainly with their engine running, and creating a tailback that can have an impact miles away – across town even. So Zebra Fuel eliminates two journeys with one of our drivers. We wanted to test the London market and then scale using London learnings. We plan on launching Paris Q4 2018, and we will be in 4 major European cities by Q2 2019.”

Exclusive Zebra Fuel member offer

PetrolPrices are delighted to be working with Zebra Fuel to help promote their amazing service to members. Zebra Fuel is the first digital petrol station to appear on the PetrolPrices map within London represented as a van icon. By clicking on the van you are not only presented with the price of fuel grades on offer, you can also download the Zebra Fuel app from the map.

Zebra Fuel will also be visible in the regular price alert emails to those who live within the London area with a Zebra price listing and members can click from the price alert to download the app here too. PetrolPrices has also managed to agree to an exclusive member offer, those who sign up to Zebra Fuel, download the app and use the code PP20 will receive £20 worth of free fuel for the first two fills, i.e. £10 off each fill.

Don’t forget to use code PP20 when you sign up.

Please note: Zebra Fuel only currently operates in South and West London, do not try to sign up and use them if you are not located in this area.

So what are you waiting for? Join Zebra now

Are owners of German cars to pay more road tax because of emissions test scandals?

For people looking to pick up a new car this year, the biggest surprise they may encounter is the cost of the road tax. Even if you go for a new version of the same car, you could see your tax go from zero to as much as £450 a year. German manufactured cars could see a significant increase due to the scrapping of the emissions related system.

Tax bands

This year sees the introduction of the new tax bands system. Currently, the system uses emissions to grade the car based on CO2, with a total of 13 bands across all vehicles. Under the new system, there’s supposedly a simplified three band system.

Under it, cars worth less than £40,000 with zero emissions will pay no tax, which is unchanged from the previous system. Those worth more than £40k will see a surcharge of £310 for the first five years, meaning owners of these vehicles will pay an additional £1,550, dropping to zero tax in the sixth year.

Then it gets complicated. Hybrids and alternative fuel models will be charged £130 while petrol and diesel models will be charged £140 a year. The first year is based on the CO2 emissions. Any vehicle exceeding £40k in value will again see that £310 a year surcharge being added for the first five years.

Cars that have emissions under 50 g/km will pay just £10 tax, while at the other end of the scale, vehicles putting out 255 g/km will be charged £2,000 a year. Alternative fuel models such as hybrids and bioethanol will have £10 cut from the annual cost.

 

German cars facing increase

The emphasis on real-world emissions, in the wake of the emissions scandal, also means that diesel cars in their first year that fail the new test could see an increase in their road tax band. Any cars failing to meet the new RDE2 emissions tests, from April 2018, will automatically be moved up one band and could mean owners face an extra £500 tax bill.

The new tests are aimed at penalising those high emitting models over rival cars that are less polluting. Any cars built before April 2018 will not face the new charge and tax rates will return to normal after the first year.

More emissions problems

More bad news for the German car manufacturers, especially Volkswagen, came from the new testing system that the industry was employing – on both monkeys and humans. As the testing system came to light, the chief lobbyist for VW has been suspended over his knowledge of the unethical testing.

Tests were conducted in a research institute in Albuquerque, New Mexico in 2014, on behalf of the now-defunct European Research Group on Environment and Health in the Transport Sector (EUGT), which was funded by VW, Daimler and BMW.

The tests involved locking 10 monkeys in an airtight chamber and showing them cartoons while making them breathe the exhaust fumes from a VW Beetle. Another report said that 25 people were given doses of diesel fumes for several hours at a time in a study at Aachen University in Germany in 2012, also sponsored by EUGT.

Unethical and wrong

While these tests were clearly unethical and worrying, they were also creating inaccurate information, according to the reports. VW said that the ‘scientific method chosen was wrong’ while BMW was quick to say they did not ‘influence or design’ the methodology used by EUGT and is against any animal experiments. Daimler said the tests were ‘superfluous and repulsive’.

VW admitted they have already laid aside some 30 billion Euros to pay fines, recalls and other costs associated with their ‘cheat devices’ that came to light during the 2015 Dieselgate scandal. But it seems that costs for people buying their cars could also continue to increase due to the inaccuracy of their emissions results, nearly three years on from the original scandal.

Have you been put off buying a Volkswagen in the future? Does it come as a surprise to you that manufacturers are cheating? Let us know in the comments.

Four in five people don’t know how to use a zebra crossing properly

The zebra crossing isn’t a new thing on our streets – in fact, they have been around for over 60 years.  A new study has shown that 80% of drivers and pedestrians don’t know how to use them, including who has a legal right of way and what drivers need to do when approaching a crossing.

Who stops when?

The study asked at what point does a vehicle need to stop at a zebra crossing to allow a pedestrian to cross?  Of those spoken to, 81% answered incorrectly.  The correct answer is that a car needs to come to a stop, to allow a person to cross, only when that pedestrian has already set foot on the zebra crossing.

It comes from Rule 195 of the Highway Code and shows that many people don’t realise how to use these familiar crossings.  The survey spoke to 2,000 people across the country, and only 19% of them knew the correct answer.  The majority – 46% in total – thought that a driver had to stop when a pedestrian was waiting to cross.

Learner drivers are required to come to a halt when they see someone about to use a pedestrian crossing.  But this doesn’t apply to drivers who have passed their test – perhaps leading to the confusion.

Zebra Crossing

Dangerous misunderstandings

Others had more extreme misconceptions of how to use the crossing, some of which have a strong potential to lead to accidents.

For example, 14% thought that a motorist had to wait when a pedestrian was walking towards a zebra crossing, not even waiting to cross.  At the other end of the scale, 5% thought that pedestrians could only cross when the road is clear.

Another 4% said that cars only had to stop for a pedestrian when they were already halfway across the road on the crossing.  Some 3% thought that pedestrians had no right of way at all and that drivers only had to stop out of courtesy.  A further 8% of the people spoken to admitted they just didn’t know what the rules around the crossings were.

Costly mistakes

As well as the potential for accidents, the issues increase the chance of making a mistake that can cost drivers money. For example, 15% of motorists are risking receiving three points on their licence, and a fine of £100, for failing to stop when a pedestrian has already stepped onto the crossing.

It also helps to explain why there are some 20 collisions a day involving pedestrians on crossing around the UK – amounting to some 7,000 incidents a year.  Other problems contributing to the issue include pedestrians being distracted by talking on their smartphones, listening to music or even checking social media as they walk.

Changing face of crossings

The rules around zebra crossings changed very little since they were first introduced back in the 1950s – when there were only around 2 million cars on the roads.  Today, we have nearer to 32 million vehicles and many people think the crossings and their rules are due for an overhaul.

New technology was showcased last year to evolve the zebra crossing so that they catch the attention of pedestrians that are preoccupied with their smart devices.  The crossing uses LED panels to change the road markings, to grab the attention of the pedestrian, and then switch to allow drivers to continue on their way.

Insurer Direct Line is also working on a series of ideas to make the crossings safer.  Their survey showed that 37% of people had experienced a car failing to stop for them at a crossing in the last year.  Another 19% said they had had a near miss on a crossing and 79% said more was needed in schools and colleges to teach children better road safety.

A combination of new technology and traditional education seems to be the favoured approach to cutting down on these 7,000 incidents a year and make people more aware of just how to use these black and white crossings.

Were you aware of the correct laws surrounding Zebra crossings? Have you had an accident like mentioned above? Let us know in the comments.