Fuel Cards in the UK: How They Work and Who They Are For

Car Owl

Published in English •

Like (77)

Share

Share on X Share on Facebook Share on WhatsApp Share on Telegram Share on Reddit Share on LinkedIn Share via Email Copy Link

Summary

• Fuel cards offer discounts: Typically 2-5p per litre off pump prices.
• Best for businesses: Simplified accounting and expense tracking.
• Multiple providers: Compare networks, fees, and acceptance.

If you run a business with vehicles, fuel cards can save money and simplify administration. Here's how they work and whether they're right for you.

What Is a Fuel Card?

A fuel card is a payment card specifically for buying fuel. Instead of employees using cash or personal cards, they use a company fuel card.

Benefits include:

• Discounted fuel prices
• Detailed transaction reports
• Simplified VAT reclaiming
• Better expense control
• No need for expense claims

How Fuel Cards Work

1. Apply through a fuel card provider
2. Receive cards for each vehicle or driver
3. Drivers use the card at participating stations
4. You receive a weekly or monthly invoice
5. Pay the total amount by direct debit

Each transaction is logged with vehicle details, making expense tracking automatic.

Who Can Get a Fuel Card?

Fuel cards are primarily for businesses:

• Fleet operators: Companies with multiple vehicles
• Sole traders: Self-employed with business vehicles
• Small businesses: Even with just one vehicle
• Larger corporations: Major fleet operations

Some cards are available to individuals, but benefits are mainly for business users.

Types of Fuel Cards

Single Brand Cards

• Work at one brand's stations (e.g., Shell, BP, Esso)
• Often better discounts
• Limited to that network

Multi-Brand Cards

• Work at multiple brands
• Greater convenience
• Usually slightly lower discounts

Supermarket Cards

• Work at Tesco, Sainsbury's, Morrisons etc.
• Good coverage
• Often competitive prices

Major UK Fuel Card Providers

Costs and Savings

Potential Savings

• 2-5p per litre discount
• Fixed weekly pricing (protection from daily fluctuations)
• Volume discounts for larger users

Potential Costs

• Card fees: £0-£3 per card per month
• Transaction fees: Some charge per fill
• Invoice fees: Some charge for paper invoices

Calculate net benefit based on your fuel usage.

VAT Benefits

Fuel cards simplify VAT reclaiming:

• HMRC-compliant invoices provided
• All transactions itemised
• VAT breakdown on each invoice
• Reduces paperwork significantly

For businesses registered for VAT, this is a significant administrative benefit.

Controlling Fuel Spend

Fuel cards offer spending controls:

• Spending limits: Daily or weekly caps
• Product restrictions: Fuel only, or allow shop purchases
• PIN protection: Security for each card
• Vehicle linking: Mileage tracking
• Real-time alerts: Notifications of purchases

How to Choose a Fuel Card

1. Map your routes: Which networks do your drivers pass?
2. Calculate usage: Volume affects discounts
3. Compare fees: Watch for hidden charges
4. Check payment terms: Weekly vs monthly billing
5. Consider services: Breakdown cover, services access

Getting Started

1. Research providers for your needs
2. Apply online (usually quick approval)
3. Receive cards within a few days
4. Set up cards and controls
5. Brief drivers on usage
6. Monitor and adjust as needed

Want to find the cheapest fuel near you? Use our fuel finder to compare prices at local stations.

Read our other articles: