In these tough economic times, cost control has risen to the top of the agenda for companies of all sizes, across all industries. Fuel prices have seen significant fluctuation over the past 18 months, and the uncertainty seems set to continue for the foreseeable future.

This White Paper examines what decisions companies can take now to manage their future exposure to increasing fuel costs.

Please note that while some reference is made to commercial vehicles, this paper is specifically written with company car fleets in mind.

Operating a fleet of cars is often one fo the largest operational costs for a business, and fuel is a major part of these costs. A typical 500 car fleet could expect a fuel bill in the region of £1m to £1.25m every year, as the table¹ illustrates.

Concerns over the unpredictability and highly flutuating price of fuel, as well as the fact that it is a finite resource, are very real. The beginning of 2009 saw unprecendented fuel price rises, and although pump prices eased in min-2009, further price increases have followed in the latter part of the year, with petrol prices becoming almost at parity with diesel. The general belief now is that the age of cheap fuel is over.

Managing your organisation's exposure

Many commentators suggest that alternative fuels might yield cost, environmental and sustainability benefits. Others point to traditionally-fuelled vehicles using new high-efficiency technology. So what is the answer?

The truth is that there's no single answer, but this paper sets out our thinking on the key options so that you may consider, in the context of your business, what fuel strategy might work for you.

1 - The information in this table is based on Fleet News published national average UK pump prices. Further details available upon request.