If you’ve been keeping an eye on the news lately, you’ve probably seen the headlines: petrol prices are finally falling. After weeks of relentless increases driven by global supply disruptions, national averages have started to ease, dropping by about 5% recently
This has given Aussie households and businesses a small “bowser breather”. But before you celebrate, it’s worth asking: is your business actually seeing those savings at the pump, or are you still paying too much?
In my experience, the reality for fleet operators and small business owners is often very different from the national average. While wholesale prices might be trending down, retail prices at the local servo often lag behind. If you’re relying on the board price to manage your fuel expenses, you’re likely leaving money on the table.
The Lag Between Wholesale Drops and Retail Prices
When global oil prices drop, it can take time for those savings to trickle down to the retail level. The Australian Institute of Petroleum monitors these trends closely, and I often see that while terminal gate prices (the wholesale price) might fall quickly, the price you pay at the pump doesn’t always adjust at the same speed.
This means that even though the news is reporting a drop in fuel prices, your local station might still be charging near-peak rates. For a small business with a couple of utes, or a larger transport operation running a fleet of trucks, paying an extra 10 or 15 cents per litre adds up incredibly fast.
Why You Shouldn’t Rely on the Board Price
If your current strategy is to have your drivers look for the cheapest board price, you’re playing a losing game. Here’s why:
- Wasted Time: The time your drivers spend driving around looking for a cheaper station often costs more in wages and lost productivity than the few cents they might save on fuel.
- Inconsistent Savings: You’re entirely at the mercy of the retail market and local pricing cycles.
- No Expense Control: Relying on drivers to collect paper receipts makes tracking your actual fuel spend a nightmare for your bookkeeping team.
The Real Value of a Fuel Card Goes Beyond the Pump Price
The only way to guarantee that your business benefits from lower fuel prices—and is protected when prices inevitably rise again—is to stop paying retail prices altogether. A corporate fuel card allows you to lock in a guaranteed discount off the pump price, meaning you save money every single time you fill up.
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However, the benefits of a modern fuel card extend far beyond simple discounts. In my opinion, the operational advantages are just as valuable as the savings at the bowser:
1. Unbeatable Network Coverage
When local supplies are tight, having the flexibility to fill up anywhere is crucial to keeping your business moving. Cards like WEX Motorpass and FleetCard offer massive networks. WEX Motorpass is accepted at over 6,500 locations across Australia, while FleetCard covers over 6,200 locations (including major brands like Shell, Ampol, and 7-Eleven). This means your drivers never waste time or fuel searching for a specific brand.
2. Protecting Your Cash Flow
High fuel prices don’t just hurt your profit margins; they destroy your cash flow. If your weekly fuel bill jumps, but your clients are still paying you on 45-day terms, you’re financing that gap. A fuel card acts as a structured credit facility. For example, FleetCard offers up to 51 days of interest-free credit. This allows you to align your outgoing fuel payments with your incoming client revenue, preserving vital working capital.
3. Tightening Purchase Controls
When fuel is cheap, a few unauthorised purchases or a bit of “shrinkage” (employees filling up personal jerry cans) might go unnoticed. When prices are high, that leakage is catastrophic. Modern fuel cards allow you to set strict parameters at the individual card level. For this, Shell Card has some of the best purchase controls and smart alerts on the market. You can restrict purchases strictly to fuel and oil, blocking in-store purchases like food and drinks. You can set daily or weekly volume limits, and receive instant alerts for unusual transaction patterns.
4. Maximising Fuel Tax Credits and Simplifying Accounting
Relying on drivers to collect paper receipts is a recipe for missed claims and accounting headaches. The ATO requires strict substantiation for fuel tax credits. A business fuel card consolidates all fleet spending into a single, ATO-compliant monthly invoice. It separates the GST, calculates the total litres purchased, and makes claiming your rebate a five-minute job for your accountant, rather than a forensic investigation.
My Top Fuel Card make for Your Fleet
Fuel card providers are offering some of the most aggressive promotional rates I’ve seen in years. If you want to ensure you’re never overpaying for fuel and taking full advantage of these operational benefits, here are the cards I highly recommend:
- Shell Card: This is currently my top pick for businesses looking for immediate, deep discounts. At the time of writing, Shell is offering a massive promotional discount of up to 7c per litre off fuel for the first 6 months, along with $0 monthly card fees for that same period.
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- WEX Motorpass: If your fleet travels widely and needs maximum flexibility, WEX Motorpass is an excellent choice. At the time of writing, you can get $0 management fees for 6 months using the promo code ZEROFEE26, making it a very cost-effective option to implement.
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- FleetCard: A powerhouse for network coverage and cash flow management, offering strong ongoing discounts and up to 51 days of interest-free credit.
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Take Control of Your Fuel Costs
While it’s great news that national fuel averages are trending downwards, hope isn’t a strategy. Don’t wait for your local station to eventually lower their prices.
By switching to a business fuel card like Shell Card, WEX Motorpass, or FleetCard, you take control of your expenses, lock in guaranteed discounts, and ensure that your business is always getting the best possible deal on fuel.
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