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Less than 50% of all European fleets provide their drivers with fuel cards, instead opting for the pay-and-reclaim method, according to research by Datamonitor last year. But at a time when fuel prices are rising and there are rumblings about the EC blocking VAT reclaims on business mileage unless companies have a purchasing system in place, there has, arguably, never been a better time to adopt fuel cards. So why is take-up so low?

"Initially it's not the easy option," says Richard Owen-Hughes, group marketing director at independent fuel supplier Bayford. "The easy option is perceived to be handing over a wad of cash or a credit card to a driver and saying 'fill up as you need it'. That feels like the easy option but it's not. In the background you're opening yourself up to all sorts of issues."

One issue is the administrative burden involved. Companies that issue drivers with corporate credit cards have to sift through numerous statements sorting fuel usage from other expenses, as well as working out an appropriate level for mileage reimbursement. Fuel cards eliminate this task.

"Companies can achieve immediate benefits through the streamlining of invoicing and administrative processes," says Steve Riggens, marketing manager, BP European Fleet Services. "Consolidated monthly fuel card bills show exactly what a fleet has spent, simplifying fuel payment while providing transactional breakdown that can be monitored by the fleet manager."

Simply eliminating the paperwork makes a fleet manager's life easier. "We can give you an electronic format bill to upload into your account system, which means you avoid all the expense forms and VAT reclaims," says Luke Hodgson, retail cards manager, Total. Instead you get one invoice once a month, for example, saving stress, time and, ultimately, money.

Another issue tackled by fuel cards is the concern that some employees will take advantage of the fuel perk.

"If you give a bunch of cash or a company credit card to a guy, he can claim for the fuel when he might well have been driving his wife's car." points out John Brooke-Langham, head of product development at fuel management specialist CH Jones. "No one is any the wiser."

# posted by Medical Information : 4:24 AM