When it comes to fuel cards, many people instinctively opt for supermarket cards, assuming that is where the savings are. But as fuel prices fluctuate, the real value is not always as clear-cut as it seems. Businesses that run fleets or are frequently on the road need to be careful about where their fuel savings come from. Many are surprised to learn that supermarket fuel cards are not as cost-effective as they believe, particularly compared with oil company fuel cards, which offer better prices and other advantages that suit business use. Here is why a card from the likes of Shell, BP or Esso is the more beneficial option.
The supermarket fuel card misconception
It is easy to see why many believe supermarket fuel cards are best. Supermarkets such as Tesco, Asda and Sainsbury's have long marketed themselves as the place for the lowest-priced fuel. But while they may offer competitive prices to everyday consumers, that does not always translate into savings when using a supermarket fuel card for business.
The main reason is that supermarket fuel cards typically offer fuel at the pump price. Businesses using them still pay whatever the pump price happens to be that day. At the time of writing, supermarket fuel prices were averaging around £1.42 per litre, so despite the perceived convenience, businesses on supermarket cards are not necessarily getting a better deal.
The real savings with oil company fuel cards
Oil company fuel cards, such as those from Shell, BP and Esso, offer far better value. They can provide fuel at a discounted rate, typically below the pump price. At the time of writing, Shell, BP and Esso fuel cards were priced at around £1.28 per litre, a saving of 14p per litre compared with supermarket fuel cards. That might seem small, but for businesses that rely heavily on travel it adds up.
As an example, if a business vehicle fills up with 50 litres of fuel a week, that is a £7 saving each time compared with supermarket fuel prices. Over a year of weekly refills, that is £364 saved per vehicle. For a fleet of 10 vehicles, the savings quickly reach over £3,600 a year. That money can be reinvested in the business, used for upgrades or put aside for future expenses.
Better quality fuel from oil companies
In addition to cost savings, the quality of fuel from oil companies is often superior. Many drivers believe fuel is the same wherever you buy it, but that is not entirely true. Shell, BP and Esso all invest heavily in developing advanced fuels, which often contain additives designed to clean engines and improve efficiency. Over time, better quality fuel can mean improved vehicle performance, better fuel efficiency and even a longer vehicle lifespan.
Supermarket fuel is often seen as "good enough", but for businesses that want to keep their fleet in peak condition, higher-quality fuel is a real advantage. The cost of repairs and vehicle downtime can quickly outweigh any marginal saving at the supermarket pump.
Convenience and control for businesses
Beyond price and quality, fuel cards from major oil companies offer a range of features that make them far more convenient and useful to businesses than supermarket fuel cards.
- Widespread network coverage. Shell, BP and Esso have large, well-established networks across the UK and Europe, making it easy for drivers to find a convenient place to refuel. With thousands of stations nationwide, drivers can refuel practically anywhere, which simplifies logistics for businesses that operate across regions.
- Expense management and reporting. Many oil company fuel cards offer online portals or mobile apps that let business owners track fuel usage, receive detailed reports and manage accounts in real time. This makes it easier to budget, monitor fuel consumption and control expenses, and allows fleet managers to spot inefficiencies or unauthorised purchases easily. When your cards are managed through Driving Down, we stay on top of all the figures for you to make sure you keep the best deals.
- Security features. Fuel cards come with built-in security features that help prevent fraud or misuse. Many cards can be restricted to certain purchases, such as fuel only, and some allow PIN protection. This gives businesses peace of mind that their fuel budget is being used appropriately.
- Cash flow benefits. With oil company fuel cards, businesses often receive one consolidated invoice for all fuel purchases in a billing period. This reduces the need for petty cash, receipts and reimbursements. Many providers also offer credit terms, giving businesses more flexibility with cash flow, which can be crucial for small and medium-sized enterprises (SMEs).
Why supermarket cards fall short
Supermarket fuel cards do not offer the same level of service or savings. They are largely designed for consumer convenience rather than business use. They only offer the pump price, lack widespread reporting features and offer limited fuel quality, which makes them far less appealing for business.
If you are a business owner or fleet manager, it is time to reconsider your fuel strategy. The savings from oil company fuel cards can make a noticeable difference to your bottom line, and the added convenience, security and fuel quality outweigh what supermarket cards can offer. The team at Driving Down can review your current spend and see where savings can be made. Get in touch today.
