In this post, we’ll explore the key pricing strategies behind fuel cards, including fixed prices, pump prices, and Platts Plus. Understanding these options is crucial for businesses looking to manage fuel costs effectively. By the end, you’ll know how each pricing model works and which might be best for your needs.
What Are Fuel Cards?
Before understanding fuel card prices, it’s important to know what fuel cards are.
Fuel cards are payment cards that allow businesses to manage and track fuel purchases for their vehicles. Used by companies with vehicle fleets, fuel cards simplify the process of buying fuel by providing drivers with a convenient payment option fuel stations on the network. Benefits include detailed reporting, spending controls, and cost savings.
Businesses can monitor fuel consumption, reduce administrative work, and optimise fuel expenses. Fuel cards can also offer security by limiting unauthorised fuel purchases and are widely accepted at stations, making them an essential tool for fleet management.
View our ultimate guide to business fuel cards.
Types Of Fuel Card Prices
There are three different fuel card pricing strategies that we will cover in this blog post.
- Fixed Prices
- Pump Prices
- Platts Plus
1. Fixed Prices
Fixed price fuel cards offer businesses a set price per liter of fuel, typically agreed upon for a specific period, regardless of fluctuations in market prices. This means that, no matter how fuel prices rise or fall at the pump, the company pays the same agreed-upon rate.
The primary benefit of a fixed price fuel card is predictability. Businesses can budget more effectively, as they know exactly how much they’ll be paying for fuel, which helps in controlling costs and avoiding sudden price hikes. This stability is particularly beneficial for companies with large fleets that consume significant amounts of fuel. Fixed price fuel cards also protect against regional price differences, ensuring a uniform rate across different locations.
While it may not always offer the lowest price if market rates drop, fixed price cards provide peace of mind and consistency, making them an attractive option for businesses prioritising cost control and long-term planning.
2. Pump Prices
Pump price fuel cards charge businesses based on the price displayed at the pump at the time of purchase. This pricing model directly reflects current market rates, which fluctuate based on supply, demand, and other factors. The cost per liter may vary across locations and between different fuel stations.
The main benefit of pump price fuel cards is transparency—what you see is what you pay. Businesses can take advantage of lower prices when market rates drop, and drivers can select stations offering competitive rates. This flexibility allows businesses to save on fuel when prices are favorable.
However, a key drawback is the potential for regional and local price variances. In some areas, fuel prices may be significantly higher, meaning businesses could end up paying more depending on location. Market volatility can also lead to unexpected cost spikes, making budgeting more challenging. Pump price cards suit businesses willing to accept fluctuating costs for potential savings.
3. Platts Plus
Platts Plus fuel card pricing is based on the Platts index, a global benchmark for fuel prices that reflects wholesale market rates. The “Plus” refers to an additional margin added by fuel suppliers and businesses. With this model, businesses pay the wholesale market price, as reported by Platts, plus an agreed-upon margin.
The main benefit of Platts Plus pricing is that it it’s tied to a recognised market index. This allows businesses to closely track market trends and know exactly how much they’re paying over the base fuel cost. It also ensures that businesses aren’t overpaying during times of lower market prices.
Additionally, Platts Plus pricing can offer more competitive rates compared to fixed pricing, especially in periods of low market volatility. However, businesses must be aware that prices can fluctuate, making it harder to predict fuel costs over time.
Pricing Model | Description | Pros/Cons |
Fixed Prices | A set price per liter, updated periodically (e.g., weekly), regardless of location. | Predictable costs for budgeting |
Pump Prices | Pay the price displayed at the fuel station at the time of refueling. | - Vulnerable to market volatility and unexpected price surges |
Platts Plus | Price is tied to the Platts wholesale market rate, plus a fixed margin by the provider. | - Can rise significantly during market price surges |
Fuelwise Fuel Card Prices
Fuelwise Fuel Card prices use a fixed price strategy, providing businesses with a consistent fuel rate for a set period. In the UK, prices are fixed for 7 days, offering a stable cost across that week. In Ireland, prices are updated twice per week, meaning businesses benefit from shorter-term price stability while still being shielded from daily fluctuations.
The main advantage of this approach is predictability. Businesses can plan their fuel costs for a defined period without worrying about market volatility, making budgeting easier. It also reduces the risk of sudden price hikes, especially useful for companies with high fuel consumption.
By offering regional price consistency, Fuelwise cards ensure that businesses pay the same rate across various locations, helping those with national or international operations. The 7-day and twice-weekly fixed rates provide flexibility and control, making it an attractive option for businesses seeking cost stability without long-term price locks.
Fuel Card Benefits
Here are the top five fuel card benefits:
- Cost control and expense tracking
- Convenience for drivers and streamlined payments
- Access to fuel discounts and rebates
- Enhanced security and fraud prevention
- Detailed data and reporting for fleet management
Get A Fuel Card Price Quote
If you would like to find out how much you can save with fuel cards then complete the form below to get your fuel card price quote.
Marketing Manager at Fuelwise
Dominic has been covering the fuel and fleet management industry for over seven years, writing about Fuel Cards, Telematics, and Vehicle Cameras. In 2023 he was awarded the Excellence In Marketing award at the Causeway Chamber Business Awards, followed by the Best Use Of Social Media In Service/B2B at the 2024 NI Social Media Awards. You can connect with Dominic on LinkedIn here.
