A Shift in Fleet Preferences
Recent vehicle registration data has highlighted a dramatic shift in fleet acquisitions from diesel to Plug-in Hybrid Electric Vehicles (PHEVs), reflecting businesses’ growing commitment to reducing emissions. Unlike their diesel counterparts, nearly all PHEVs on the market rely on petrol engines, leading fleets to increase petrol purchases as part of their operations.
However, this transition carries a hidden cost: petrol price margins have surged.
The Rise in Petrol Retailer Margins
Compared to the pre-COVID era, petrol retailers’ margins above wholesale prices have skyrocketed by a staggering 89%. This increase far outpaces the overall rise in fuel prices, adding unexpected pressure to fleet budgets.
Traditionally, fleet petrol purchases have been facilitated through “pump-price” fuel cards, which directly expose fleet operators to these surging margins.
Navigating the Fuel Market with Expertise
While the challenges of higher fuel costs may seem daunting, there is good news. ERA Group offers fleet operators the tools and expertise to navigate the complexities of the fuel market. By identifying cost-saving opportunities and optimising fuel strategies, ERA can help businesses achieve sustainable reductions in fuel costs.
As businesses transition to hybrid fleets, partnering with fuel experts is essential to avoid eroding the cost benefits of lower emissions. By staying ahead of petrol price trends, companies can protect their bottom line while supporting a greener future.
For more information on optimising fleet fuel costs, contact ERA Group.
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