Published on January 24th, 2019
The increasing price of fuel globally has been on the news for a while! According to recent studies and research, for every single dollar which an average American trucking company attains, it spends approximately 95.2 cents on the functional expenses.
Hence, the profit is about 4.8 cents. It is a very slim margin for the trucking fleets to work on. Therefore, trucking fleets will have to save cash wherever they can, especially on diesel fuel. It is here a fleet fuel card might help to add to their savings of any carrier size.
Today, there’s been a buzz about the fuel cards, especially from people who are associated with the trucking industry vertical. So, before you go on to determine the type of card that is apt for you, it is essential to know the way truckers fuel cards operate. Only then will you be able to leverage it against the rising price of fuel and diesel fuel and reap in the benefits.
Who Makes Use Of Fuel Cards?
Usually, the loyal customer of a fleet card is typical a trucking company. Such company is known for purchasing diesel at various truck stops for commercial vehicles. The fuel cards are designed in a way that it benefits the carriers that have a wide range in their size, i.e., from a rig to several trucks.
The list of fuel card customers also comprises of contracted customers, less-than-truckload carriers, private fleets’ as well independent operators and the owners.
How Do Fuel Cards Benefit Carriers?
A standard fuel card plan enables the carriers with a substantial discount per-gallon on diesel, along with savings on several other services. Simply put, the truckers’ fuel cards are partnerships that are designed to generate sales for fuel station merchants.
The moment a fuel card service provider, ask their members to go to the partnering stops, it gets a discount of 2% and 3% of the overall fuel sales. To ensure that more fuel card members go to the fuel stops, merchants provide attractive discounts on the per-gallon price.
All these discounts might keep changing based on multiple fuel stop location. There are chances of it changing every day, depending on the fuel costs as well as the settlement rates, that’s between the fuel card company and the merchants.
Every carrier search for a fuel card that helps them to save on diesel on an end-to-end basis on multiple locations. Hence, the real challenge is to be able to find a card program that offers you the correct blend of flexibility as well as discounts that will help a several fleet dollars on fuel.
According to the latest predictions the diesel prices are stated to increase shortly. If you want to opt-in for a trucker’s fuel card program, you can search the internet and check out the options available. Many service providers are present online and have been catering to their clients successfully.
You can draw up a list of a few service providers, check their services and reviews and then select the one that best caters to your requirement and budget capacity.