February saw the introduction of the much-heralded government “Fuel Finder” scheme, but does it benefit fleet users or will canny forecourt operators identify extra profit?
This scheme requires fuel retailers to notify any change to their forecourt pricing within 30 minutes. This data is then made available to commercially based websites (several of which were already reporting forecourt prices, though not necessarily as immediately as the new scheme).
The Government has suggested that the new scheme will enhance customer choice by reporting prices in real time, allowing users to choose local outlets with the “best” priced fuel, the implication being that this will cause competition to drive down prices.
However, the scheme does not introduce any form of price controls, it just reports actual retail prices.
In theory, if a fleet acquires fuel at forecourt pump price, the scheme gives the driver or fleet manager the ability to select the site with the lowest local prices that are convenient for operational need.
However, are time-poor drivers or fleet managers going to be able to review the scheme every time a purchase of fuel needs to be made? Never mind that the scheme does nothing to bring transparency to how forecourt prices are developed or the profit margin made by the retailers.
Indeed, some commentators have suggested that the widespread public availability of real-time prices has given retailers immediate visibility as to whether they can increase their price margin and still retain price competitiveness. This sets in motion a general chasing up of prices in the area!
Not only is “Fuel Finder” likely to be of limited use to fleet operators, but it could also even have a disbenefit on forecourt users' net fuel costs.
At ERA Group, we use our market knowledge and leverage to provide the true transparency and control on how fuel pricing is calculated. We achieve real cost savings without relying on micro-managing every purchase made at the forecourts.
