By Michael Lee, Fleet-Tech Transport Services 

We’re all (painfully) aware of the rising price of fuel and its effect on the bottom line. The U.S. Energy Information Administration (EIA) reports that diesel fuel averages about $3.33/gallon across the U.S., or a more than 70 percent increase since this time last year.

EIA isn’t predicting much relief for 2008, either; some analysts say we could be paying as much as $4 per gallon at the pump by mid-year. That means that if business is slowing down, you must find new ways to save money and offset fuel costs. Fuel cards may offer one solution.

Increase your control. Fuel cards allow you to control the way drivers spend your company’s money. A fuel card lets you set the spending limits for fuel, minor repairs, oil, winter additives, and other items your drivers need while on the road. After a purchase is made you have instant access to the purchase information, allowing you to monitor, track, and make changes if necessary.

A fuel card can also specify where your drivers can make their purchases, making it possible for you to negotiate special rates with preferred vendors.

Boost convenience. Fuel cards eliminate the costs and hassles associated with filing expense reports or reimbursement requests. If you choose a card that is accepted at all truck stops, for example, you’ll give drivers choices in deciding where to stop for fuel, taking a shower, or having a good meal - an important and much-appreciated perk.

Fuel cards can also make it easier for the driver to obtain products such as tires and repairs and services (such as towing) in the event of an emergency. They can allow access to ATMs, payroll cards, and money drafts that can be used when the driver’s other payment forms are unavailable.

Improve security. Carrying large sums of cash can be dangerous, especially if word gets out. By giving drivers fuel cards, you eliminate the problem. Before a purchase is authorized the driver must provide certain information (such as pin number) to prevent fraudulent use of the card, giving you additional assurance that the driver, not a thief, is the one actually spending your money. If a fuel card is lost or stolen it can be turned off immediately, just like a credit card, with a simple phone call or visit to the Web.

Increase savings. The right fuel card can save you money by allowing you to obtain the cash price at the pump and reduce fraud associated with the use of cash. Many fuel cards offer discounts at selected locations, saving you on every gallon purchased.

The best fuel cards maximize cost efficiencies by giving your company access to real-time pricing along the route. That can help you plan the best, most cost-effective route. In addition, since transactions are recording electronically, the driver doesn’t have to spend additional hours—often on the clock—reconciling an expense report.

Save time. In the home office, fuel cards make it much easier for accounting. Drivers’ expenses are tallied on a single, consolidated bill, making it easier to track and manage individual spending.

There are a lot of fuel cards out there these days; compare features and locations carefully and choose one that best fits the needs of your company.

>>Learn more about TransCore fuel cards>>