Benefits of Wholesale Fuel Purchases
Many factors need to be carefully monitored by fleet managers to enhance the efficiency of their vehicles, but one stands out above all others, fuel management.
Fuel prices have been a difficult challenge over the last few years as various world events have led to a steady increase in price and higher running costs for fleets. However, whilst the average fuel price has increased, wholesale fuel prices have begun to fall, making investing in wholesale fuel purchase a goal for most HGV transport companies.
Fuel Price Increases This Year
The average price of diesel reached a record-high cost of 191.03p. this is increasing in cost by 4.5p per litre with petrol breaking similar records at roughly the same time. This means that an average diesel van in your fleet would now cost an excess of £150 to fill for a day’s work. These startling numbers have created a lot of concern amongst fleet managers and owners, as it significantly increases their average fuel costs.
In the UK, billions of litres of diesel are used by commercial vehicles within various fleets nationwide. There are an estimated 460,000 diesel HGVs that operate alongside 3.2 million vans with diesel engines, this presents a vast demand for diesel fuel that the British economy is having difficulty supplying.
The rising cost of diesel suggests a risk to the economy as it’s used in most businesses’ vans and lorries, so increased diesel costs will impact their running costs. Fortunately, to address this threat to the economy, after months of these increasing diesel prices, these prices seem to be levelling out and could potentially be falling again. The FairFuelUK organisation alongside the Road Haulage Association and the conservative party candidates are pledging to reduce the VAT on various fuel costs by 50%.
These past few years have shown how erratic a fleet’s expenses can be. With record-breaking highs and now projected lows, the challenge has never been higher for fleet managers to estimate their fleets running costs. Fortunately, there are some solutions that can help mitigate these fluctuations, such as buying your diesel fuel in bulk.
Benefits of Onsite Fuel Storage
Despite all these price changes, wholesale fuel prices have continued to fall. These falling prices would conventionally have a knock-on effect of reducing fuel costs and making your fleet’s daily operations cheaper. This makes investing in wholesale fuel a far superior choice for reducing fuel costs. Buying at wholesale is the same for fuel as any other product. By buying in bulk and storing it yourself you can make significant savings and potentially avoid unexpected costs from changes in the market. Additionally, many wholesaler companies enjoy building a positive relationship with their returning customers and will offer improved deals, making it an even better investment.
When you choose to store wholesale fuel purchases onsite, you must ensure you can manage these large purchases effectively to get the most out of your fuel. You can achieve this by adding effective fuel management software to your administration. By combining an onsite fuel tank with fuel management, you can essentially create your own diesel fuel station, just for your fleet’s official use. Our software enables direct control of the dispensers themselves, limiting how much fuel is released and requiring authorisation to do so (thereby eliminating fuel theft).
Onsite fuel storage also enables fleet managers with a greater level of control over their diesel fuel. It also has the added benefit of improving the efficiency of your driver’s work. By providing a fuel source before they leave for a job you can eliminate the need to re-fuel mid-delivery. The jobs route can be planned out into its most fuel-efficient path, and leave your drivers free to focus on completing their work.
Our bunded fuel tanks are a secure, safe and cost-effective way of managing your fleet’s stock of fuel. In addition, they provide fleet managers with the opportunity to buy fuel in bulk at much reduced wholesale prices and then decide how it should be distributed amongst their drivers to continue smooth operations.
Wholesale Fuel Management
At Fueltek, we pride ourselves on providing the most effective solutions for commercial refuelling operations, such as a wireless fuel monitoring system. Additionally, we strive to promote the benefits of choosing wholesale fuel purchases but offering our superior bunded fuel tanks for onsite fuel storage.
If you are interested in investing in cheaper wholesale fuel and improving your fleet’s fuel costs, we recommend you choose our complete fuel management package. This popular package contains all you need to store, monitor and manage the wholesale fuel you purchase safely and efficiently.