Arval, Europe’s leading fleet and fuel management company, has launched a new and innovative service in the UK, aimed primarily at high fuel volume fleets of vans and HGV’s, which will allow businesses to put a cap on the average price of diesel they buy, helping them to set and stay within their fuel budgets.
Fuel now represents the second highest expense in owning a vehicle at over 25% of total cost. Between April and May this year diesel prices showed the highest month-on-month increase this decade.
As a market leader, Arval are the only fuel card provider to offer a Capped Price Diesel service. This will allow customers to cap the maximum average price of diesel purchases over an agreed period of at least twelve weeks with a minimum volume commitment of diesel over the period. For an up front fee, customers not only get the advantage of capping the maximum price, but also enjoy the benefit of lower prices if diesel remains under the capped ceiling. This will allow fleet operators and finance directors to budget their fuel costs with a level of certainty.
The service launched in October, enabling customers to opt in at specified times throughout the year. They will benefit from greater stability, can set their fuel budgets with more price certainty and may gain a competitive advantage in their industry or market. They can also use it as a back up plan, signing up to the scheme without any cost commitment, so if prices start to become unpredictable they can opt in and cap their diesel expenditure.
Arval operate the service through a leading commercial vehicle diesel network of over 1,350 sites. Diesel purchased through this network is often cheaper than the national average pump price because prices are calculated based on the current commercial diesel market (Platts) and then fixed for the week.
With over 35 year’s experience, Arval is the leading provider of fuel cards in the UK. This expertise makes them ideally placed to offer a commercial vehicle solution to help customers to budget fuel costs effectively, in particular for large van and HGV fleets.
Danny Clenaghan, Card Development Director at Arval comments:
“Because of our understanding of the fuel market we have been able to develop an innovative new solution to managing fuel costs. We appreciate the pressure that volatile fuel prices put on fleets and have designed this product which will deliver certainty while still providing flexibility.”
He adds:
“The current economic environment means that fleets require not just great service and value for money, but also more stability to help manage their business through difficult times. Arval can deliver all of these things.”
For fleets to be eligible for the product they must commit to a weekly volume. More information about the Capped Price Diesel product is available at www.arval.co.uk.
