A recent report addresses how the increasing cost of fuel is putting enromous pressure on the bottom line of almost all organisations . The common solution which managers are using to confront this issue is to cut fuel usage as much as possible.
When the cost of VAT increased in the New Year and fuel duty also, the financial burden upon corporations became heavier than ever before. With Aprils’ planned fuel duty raise putting even more pressure on many organisations; businesses now must come to a decision whether or not to pass this added cost onto their buyers.
The government is currently under rising pressure to scrap April’s planned rise to ease the ache for both motorists and businesses alike, many dread that if such measures are not taken the insolvency rate could drastically increase across the UK.
It is widely believed managers are making an attempt to help alleviate these pressures without impacting the quality of their operations. The problem lies for many managers because in the vast majority of cases the readily available tools have already been used. As a last bid to deal with business fuel expenses it is reported that many organisations are trying to do away with business travel totally.
This poses the question; is it ever realistic to expect business to fully eliminate travel expenses?
In the real world it is somewhat unrealistic to think each and every manager can cut 100% of company travel.
It is clear that even the shortest of travel will generate fuel expenses, however, providing that the journey is a vital one and the fuel is bought at the best possible rate, keeping track and managing costs is still feasible. The key to fleet management is to keep a tight rein over all expenses; something which a fuel card can very easily facilitate.
It is really important to remember as with any other area of business to have a strategy and fuel administration is no different. To simply have a fuel card is not a solution, it is vital to reanalyse what services and price you are being provided- this will help assure you are getting the best deal for your fleet.
Related posts: