Biodiesel is a diesel-equivalent processed fuel derived from biological sources, such as plants and other living forms, as opposed to fossil fuels (derived from the fossilized remains of dead plants and animals).

In theory, fuels made from plants can reduce the amount of carbon dioxide emitted by cars and trucks: Plants absorb carbon as they grow, and it is released again when the fuel is burnt. Biodiesel is biodegradable and non-toxic and typically produces about 60% less net lifecycle carbon dioxide emissions. And thus, on the face of it, may be seen to provide a clear-cut benefit.

However, emissions of the smog forming hydrocarbon are 35% greater from biodiesel than from petroleum-based diesel, and emissions of nitrogen oxide are also higher. But to see the full picture it is important to look at the sourcing of biodiesel – and it is here that the problems really lie.

Tropical deforestation
A Sustainability Report by the Swiss Bank Sarasin in July 2006 placed “the present limit for the environmentally and socially responsible use of biofuels at roughly 5% of current petrol and diesel consumption in the EU and US.” Beyond that level, the production of fuel begins to compete directly with the production of food – resulting in rising food prices, and food scarcity in poorer countries.

Even more problematic, however, is that whilst biodiesel can be created from many crops, for example, barley, rapeseed, maize and wheat, production will naturally gravitate towards the most efficient and cost-effective source – which is palm oil.

Already this new market for palm oil has stimulated a massive expansion of tropical deforestation in Malaysia and Indonesia, and as the forests are cut down, the carbon in both the trees and the peat they grow on turns into carbon dioxide. A study by the Dutch scientific consultancy Delft Hydraulics found that the production of every tonne of palm oil causes 33 tonnes of carbon dioxide emissions. This is 10 times worse than petroleum.

Thus when the effect of sourcing biodiesel (from the most efficient and cost effective source) is included in the equation, the evidence suggests that far from reducing the carbon footprint of transport, increasing the use of biodiesel may accelerate climate change.

Immediate positive impact
I believe that there are other, better ways towards a greener transport industry – and that the use of fuelcards, such as those provided by Abbey, offers one way that fleet managers and drivers can immediately begin to reduce their carbon footprint.

For example, Abbey’s fuelcard services include a free monthly report which includes the fuel consumption and MPG data from which fleet managers can work out the carbon footprint of each of their vehicle.

Additionally, with a weekly fuel price that applies nationwide and is up to 2-3p below pump prices, there is no need for drivers to drive around searching for the best fuel price. This helps to reduce fuel consumption, and protects Abbey cardholders from potentially costly regional price variations.

Furthermore, the extensive network of Abbey sites makes it easy for drivers and managers to plan fuel stops that do not take them out of their way, thereby again saving valuable time and unnecessary fuel consumption.

And with the availability of Abbey site locators in numerous formats – including sms messaging, printed directory, satnav, and online – finding a convenient forecourt for re-fuelling is also easy and quick, whether in the office or out on the road.

Steve Clarke, Abbey Fuelcards sales and marketing manager, said: “Carbon deposits build up on injectors in even the most efficient diesel engine. Using a more efficient brand of diesel, such as Shell Diesel Extra, has been shown to improve engine power performance by up to three per cent and to reduce fuel consumption by around three per cent. In simple terms, that means travelling further per litre while producing lower CO₂ emissions. Over the course of a year, three per cent greater efficiency represents a significant gain.”

Shell Diesel Extra can be purchased by Abbey Fuelcards euroShell cardholders in the same way as normal fuel and lubricants. EuroShell is valid at 1,100 locations nationwide, offering discounts at 450 HGV sites and including coverage of one-third of the UK motorway network. Shell Diesel Extra, suitable for use in any diesel engine, includes a high-cetane additive, improving the combustion of the fuel. It is already available at 60 per cent of Shell service stations, with wider availability planned and costs the same as ordinary diesel.

Steve Clarke said: “With euroShell cardholders already enjoying savings, security and service, the improved performance and lower emissions represent a bonus which any company will welcome.”

Sometimes you have no choice and have to accept the inevitable, concentrating instead on something where there is more than one option. Paying the VAT man is just the most obvious example of this.

Too much choice can be just as frustrating: knowing that you could probably have found the commodity you are buying more cheaply just around the corner. The time it takes, however, can mean that just the act of shopping around wipes out any potential saving. The classic example is fuel. When you need to top up, you have no choice. In an unfamiliar area, the first forecourt you see may not be the cheapest locally, but it is not worth hunting around for a better deal — which may not even exist.

In a perfect world, you would always know where to find the cheapest fuel, no matter where in the country you might be. In fact, you would always know where to find fuel at a special discount price. The ‘cherry on top’ would be if you could fill the tank cheaply but delay paying for it, with a period of interest-free credit.

If you mention this to virtually any truck driver, they will look puzzled and ask why you do not have a fuelcard. Haulage companies, coach operators, taxi drivers and other high-mileage commercial users have enjoyed all of these ‘perfect world’ benefits, and more, for some years. Now, exactly the same fuelcard benefits are becoming more widely available. Virtually any company spending £500 or more each month on diesel or petrol, provided that it passes the usual credit checks, is likely to qualify for a fuelcard. So, what are fuelcards and could they offer you savings?

This is how it works. You apply for a fuelcard, requesting enough cards to give one to each of your drivers. With each card, you also receive a guide to all the sites where it may be used — as many as 1,400 or more filling stations nationwide for some cards. The fuelcard provider then notifies you, typically at the same time every weekend, of its fixed national price for fuel for the coming week — normally around 2p to 3p less than pump prices. You should be able to receive your weekly notification via email, text or fax, as you prefer.

When your driver needs fuel, they quickly consult the guide and head for the nearest site. After filling up in the usual way, they present the fuelcard as they would any other type of card. That is all there is to it.

Each week, you receive a single invoice covering all of your vehicles, which is then paid automatically by direct debit. The interval between top-up and payment means that you could receive up to a fortnight of free credit for your fuel purchases. In addition, you should be able to request reports, customised to meet your needs, and ought to be able to access your account information 24/7 via the Internet. You should also be able to call the fuelcard provider with any questions regarding your account.

The obvious benefit is the day-after-day saving on fuel prices. Almost as important, there are indirect savings through the major reduction in your administrative workload: just a single invoice to manage, instead of a receipt for every fuel purchase. In addition, you gain from the account management services which enable you to monitor and control your fuel expenditure much more closely. A further advantage derives from the security gains: your fuelcard can only be used for authorised purchases and, being matched to either the driver or the vehicle, is of no value to a thief if stolen. So, would you qualify for a fuelcard and how do you go about getting one?

Firstly, you need to know the size of your monthly fuel bill. If you do not immediately know, ask whichever poor soul has the never-ending task of dealing with the pile of paper receipts from garages. Because it typically comprises a lot of relatively small bills, fuel can disappear among other costs and is rarely reported as a single company-wide cost item. It is quite common for a company to be spending more than it realises. If you are spending in the high hundreds of pounds monthly — or more — you could benefit from a fuelcard.

Your challenge is to find the right fuelcard to meet your needs. If you contact a provider which offers only one type of fuelcard, they will want to persuade you that they have the answer, regardless of your circumstances. No single fuelcard, though, can be the right answer for everyone. The trouble with fuel cards is that people think of them as discount cards. Sometimes, this is right: a particular card’s benefits can begin and end with cheaper fuel. Not all cards are the same, however, and one size does not fit all.

If most of your drivers spend their time on local journeys, a fuelcard network that focuses on motorway refuelling will probably not be ideal for you. It could be perfect, though, if you have a number of vehicles travelling up and down the motorways. So, the fuelcard provider you contact should want to know about your circumstances: do you have a couple of HGVs, a dozen small vans, a handful of pick-ups or a mixture? Remember to mention any company cars that you might also want to cover. Do all of your vehicles run on diesel, do you only need to buy petrol or do you have mixed usage?

The top-line benefit of any fuelcard will normally be cost savings at the pump, but look beyond this. A driver needs more than fuel to keep the wheels rolling. What about lubricants and, if you have one or more HGVs, AdBlue, for example? Some cards handle these, some do not. Make no assumptions: ask the question.

One major fuelcard benefit may not be immediately obvious: you are invoiced directly for fuel, rather than a driver paying for it and being reimbursed. This is important because of the European 6th Directive, which says that if your drivers buy fuel within the EU, you can reclaim the 17.5% VAT — if you have been invoiced directly for it. Choose the right 6th Directive-compliant fuel card and the administration is quick, simple and assured. Otherwise, prepare yourself to battle with bureaucracy, with the very real likelihood of wasting your time and losing your money.

Remember, a fuel card is supposed to save you money and management time. The fuel management headaches will linger, though, if you have problems keeping track of what you are spending. So, look into the service levels on offer. Can you access your up-to-date account details 24/7, via the Internet? If not, consider what that tells you about the provider. Whichever card you pick, you should assume that, sooner or later, you will want to talk to somebody. Find out whether you will be ringing a random anonymous voice in a call centre, or talking to the dedicated account manager who knows all about you. It makes a difference.

Look around at the various fuelcard options available and pick the one that best suits your particular circumstances. If you are unsure about anything, any reputable fuelcard provider will be able to answer all of your questions within a single telephone conversation. You should usually be able to apply for your chosen fuelcard at the same time, or on-line via the Internet, but remember that in either case — as you are applying for free credit — you will then be sent a standard application form which needs your signature. Think about the last time you applied for a credit card; it is much the same sort of process, only simpler and faster.

The important thing to bear in mind when considering fuelcards is that they are not all the same. So, ask about network size and scope, ask about security, ask about reporting options. Ask lots of questions. Pick a fuelcard — but don’t pick just any card.

Abbey Fuelcards

The Independent Franchisees Association (IFA) has teamed up with Abbey Fuelcards to help franchisees of Interlink Express who are IFA members reduce their vehicle running costs.

As one of the UK’s largest and most successful next day parcel delivery networks, Interlink Express has over 1200 vehicles in its fleet. With an Abbey fuelcard, IFA Members will be able to purchase fuel at up to 2-3p per litre below national average at fuel stations across the UK. In addition they will enjoy the valuable service and security benefits that an Abbey fuelcard offers.

Increased security
Using an Abbey fuelcard provides significant protection against card ‘skimming’, ‘cloning’ and other card fraud because, unlike credit and debit cards, Abbey fuelcards carry no banking details and can only be used for fuel – and not withdrawal of cash. In addition, Abbey Fuelcards can provide free continuous monitoring of fuel card use, with pre-set purchase limits and specified time frames for use.

Reduced administration costs
With dedicated account management and innovative online tools for 24/7 account administration, cost control and card protection, Abbey fuelcard holders are additionally able to save time and costs in administration. No more totting up fuel expenses from receipts, but a weekly statement in a form that can be uploaded directly into their accounts package.

Peter Burke, Managing Director of PAB UK Ltd T/A Interlink Express and Director of The IFA commented: “We chose Abbey as our fuelcard partner specifically because of the many service and security benefits that an Abbey fuelcard provides in addition to the very competitive discount on fuel. I am delighted that every one of our members will now be able to reduce their day-today costs, and operate more securely, by using an Abbey fuelcard.”

The best card for each member Interlink Express franchisees will be able to select the most appropriate Abbey fuelcard for their business, depending upon the type of fuel used and area of operation:

• fastfuel – giving discounted petrol and diesel at some 1400 nationwide outlets

• Diesel Direct – providing discounted diesel at over 1100 UK locations

• euroShell – delivering discounted diesel at motorway and major trunk road service stations

Saving on fuel
With each Abbey fuelcard network, the discount fuel price is set on a weekly basis and runs from Sunday to the following Saturday. Members are advised by fax, SMS, or e-mail of the set price for fuel for the coming week. So IFA Members with an Abbey fuelcard will know in advance the savings available, and won’t have to drive around looking for the best deal on fuel – they’ll already have it!

No VAT worries
A further advantage of the Abbey Fuelcard is that it complies with the latest requirements for reclaiming VAT paid on business fuel. Using an Abbey card, as opposed to cash, ensures members will have no problems with Customs and Excise regarding repayment of VAT element of fuel used in connection with their business.

He acknowledged that unauthorised fuel purchase is easily overlooked. “The odd ‘rogue’ receipt can slip through when you are handling dozens of pieces of paper,” he said.

Abbey Fuelcards users need not suffer the moonlight diesel problem. The many benefits include reporting which can automatically highlight out-of-hours purchases. This is part of Abbey Fuelcards tailored account management, with 24/7 online account access and a dedicated account manager. With a single weekly invoice which is VAT approved and also meets with the European 6th directive, replacing drivers’ irregularly submitted handfuls of fuel receipts, users enjoy major savings on administration time and costs.

Abbey Fuelcards are designed to drive down costs, giving savings on fuel through fixed weekly prices typically 2p to 3p below marked pump prices. Almost as importantly, Abbey Fuelcards deliver greater security to help in preventing fraud and card misuse, for improved peace of mind.

Full advice and network details are offered so that applicants can choose the best card for their particular circumstances. Options(include):

• Diesel Direct – discounted diesel at over 1200 UK locations

• fastfuel – discounted petrol and diesel at some 1400 Texaco nationwide outlets

• euroShell – discounted diesel at motorway and major trunk road service stations

• ACE – the no-frills free card for savings on fuel nationwide with easy online account management