Stay
Page 30
Page 31
If you've noticed an error in this article please click here to report it so we can fix it.
fuelproof
The importance of a fuel purchasing strategy is often overlooked in transport operations but it can save a fortune
Words: Louise Cole Although fuel is responsible for some 40% of the operating costs of an artic leet, debate within the industry tends to concentrate on its eficient use rather than purchasing, but taking a long hard look at your suppliers and method of paying can pay dividends.
Fuel cards
Other than illing up on a random forecourt, fuel cards are the most expensive, albeit easiest, way to buy fuel. Even if the amount you buy is relatively small you will be better off with a commercial rate card, rather than a retail card. Arval, BP, Shell, The Fuelcard Company and The Fuelcard People are some of the companies offering cards, while if you do Continental work check out AS24.
As with any buying decision it pays to shop around.
Key things to look for are: ● How big is the network and where can you ill up?
● How much above the Platts price (the European wholesale price) will you be paying?
● Will it cost more using motorway illing stations?
● How easy is to it to stop a card in case of theft?
Typically, fuel cards will quote you a price each Friday for the following week’s purchases, which is based on the previous week’s wholesale prices, plus margin. Check that this price stays competitive and while you will get better prices for larger amounts, it can be worth having more than one card supplier.
Be prepared to check your invoices and pricing against the Platts price. Fuel cards generate multiple small invoices, which makes it harder to spot added margin and not all cards will bring the price down as quickly as base fuel costs can drop. If you can, negotiate a Platts-plus pricing mechanism.
On-site bunkering
While on-site bunkering gives greater control and a marginally better bulk fuel price, unless you are dealing with a million litres a year it is an expensive option.
Tanks are costly – they need double-skinning; a bund around them that can hold 110% of the contents; pipework; hoses and pumps; and a reinforced concrete fuel island base.
You will also need someone to be responsible for purchasing fuel, and maintaining the tanks and equipment. Security is another issue and you will need insurance to protect against any pollution costs.
On-site bunkering is only advisable for very large operations and is a long term investment. Even buying 36,000 litres a time, you probably won’t save more than 1p/litre over a competitive fuel card.
Network bunkering
Bunkering into a network gives the price advantage of bulk purchase, but eliminates the storage headache. Keyfuels is one of the irms offering network bunkering. On top of your fuel costs, you’ll pay a slight margin for storage and administration. It can be a cost-effective option for companies that don’t buy enough fuel to justify on-site bunkering, but do purchase more than 50,000 litres a time.
Once bought, the fuel is credited to your account and can be drawn off from any of the 1,500 Keyfuels sites around the country.
When considering this you need to identify key routes and locations to make sure the network is suitable. ■