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Fuel
Cards
Keyfuels aims to open up a fixed price fuel market for mixed fleets
after striking a deal with Tesco. The fuelcard provider already has one
of the largest fuel service station networks, with more than 1,550 sites
located across England.
But its partnership with Tesco – the UK’s biggest fuel retailer – adds a further 475 sites and, according to Keyfuels, will help LCV and car fleets manage their fuel more effectively. “This deal is a real leap forward for us in what we can deliver to the fleet market,” said Peter Bridgen, managing director of Keyfuels. “We’ve been scratching the surface of the LCV and car market for the past few years, but the convenience of a network like Tesco takes us to the level where we can really target that sector.”
Keyfuels, which is owned by Fleetcor, already delivers around two billion litres of fuel a year to 30,000 customers. The vast majority are HGV operators which either choose a bunkering model, buying fuel at a commercial rate which is then accessed through the Keyfuels network, or opt for its pay-as-you-go model, which is based on a weekly average price.
Purchasing fuel commercially means a saving of between 3-8p per litre against the national average retail price. That would equate to a saving of around £35,000 for every million litres purchased based on a saving of 3.5ppl.
Keyfuels customers include the likes of Tarmac, Wincanton and BT Fleet, but for it to make real inroads into the LCV and business car sector securing additional coverage has been crucial. Morrisons was added to its network in 2003 and Bridgen says that was an important first step in opening up the mixed fleet market.
They are expected to include a pay-as-you-go model, which would effectively mean fleets paying discounted fuel rates across the Keyfuels network, while also benefiting from some of the lowest pump prices around on the supermarket fuel service stations.
The deal comes in the wake of fleets having to endure the volatility of the fuel market for the past few years. As the second biggest cost for fleets to consider, price fluctuations have meant it has been difficult for them to maintain a tight grip on fuel budgets. The Keyfuels model allows any change in price to be reflected much more quickly at a margin significantly below the average retail pump price, while giving fleets the transparency the market craves.
PetrolWorld 050911 Source: Gareth Roberts Fleetnews
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