Fuel price volatility poses a cash flow challenge for any business with a fleet to run. BP has announced a new service to help the enterprise manage fuel price fluctuations.
Reports on Wednesday (Aug. 3) said the oil and gas conglomerate has rolled out a new pricing structure for its corporate fleet clients. The solution caps fuel costs to protect firms against price increases, while still enabling customers to benefit from fuel price declines, reports said.
"Fuel price volatility can have a meaningful impact on a business' profitability, cash flow, competitiveness and overall ability to do business," said BP Fuel Cards Marketing Manager James Field-Davis in a statement. "Exercising control over consumption an cost is an essential part of managing a fleet, so BP's Fuel Price Guarantee is a unique way for fleet owners to budget, control and plan fuel costs more efficiently by not only capping the price of regular diesel but also benefiting from falling prices."
The Fuel Price Guarantee offer caps fuel prices for a set period of time and consumption volume, BP explained. The tool is offered to customers in the U.K. through U.K. Fuels or Be Fuelcards.
The Fuel Price Guarantee program hands businesses a BP Plus fuel card to use at BP fueling stations. The cards operate under the price caps, and fleet managers receive a report every month detailing spending on the card and how much money a company has saved through the price caps.
While the BP Plus fuel cards can be used across a variety of fueling stations, reports said the Fuel Price Guarantee system will only apply when the card is used to pay at BP stations.