Fuel Card Rip Off -Keep an eye on your fuel card

zg3409

Hi,

I am warning others to keep an eye on your fuel card costs. I don't get VAT or anything back on my diesel, but I have been using fuel cards to save money off the pump prices.

I have had a few different fuel cards such as DCI, topaz etc. In the last year many of them have changed their pricing/ how it is calculated and terms. I noticed that sometimes it is cheaper to just pay at the pump in cash instead of using the cards.

Firstly I don't blame the fuel card companies for trying to make money, but offering a service that is MORE expensive than pump prices is a bit crazy, especially when you have specifically travelled to their "special pumps" for discounted fuel.

When I first got the cards the calculations were fairly simple, 3c off the pump price or if you go to a specific garage in your area the weekly price will normally be a few cent cheaper, however there are now catches.

1) Some cards now charge a fixed price off the local pump price (E.g. Topaz) but I presume large companies can haggle the costs down lower, rather than a fixed national price (E.g. DCI)

2) Other cards set weekly prices (sent by text) that can often be HIGHER than the pump price, in my case EVERY time for months. (This was with DCI) They send a text once a week with the latest prices but the text is the price minus 23% VAT (After calling them they said future texts will include the vat price ) Without the total cost it's hard to quickly compare the pump price. I was going into my phone and multiplying the price quoted by 1.23 to give total price.

3) The price you get will vary over time based on the amount of fuel you use (and how much you haggle). When I started a year ago the prices always seemed lower than pump prices (with DCI preferred garages), but now after 8 months the prices seem HIGHER than pump prices by 3 or 4c. I rang them and they said that it depends on the amount of fuel you use, BUT they would put me on a higher fuel tariff, so my weekly quotes would be lower. They also said if I was texted a price that was too high to ring them and they would try lower it!!!, so I think they lull you in to a false sense of saving, and then slowly crank the price up, and due to the minus vat text price, you start paying over the pump price without realising.

4) If you miss a payment topaz charge 5% above the bank rate per month (that's more than 60% APR) on arrears, so don't miss any payments. (remember they say the card is 100% free!)

5) Hidden annual charges that only kick in in second year. It seems they all have an annual fixed charge per card these days. It does not happen if the first year, but companies like DCI charge 30 Euro in year 2. This might not seem like much but if you are only saving 2 or 3c per litre, or not using the card much, or not using much fuel per year, this charge turns the card from a saving to an extra expense.

For example
If you fill up by 60 Euro (40L) a week at 1.50 per litre, and save 2c/litre using the card
60 x 52 = €3120 annual fuel without card
with card you would pay
59.2 x 52 =€3078.40 giving €41.60 annual saving, but when you remove the €30 Euro annual charge, that's a saving of less than 12 Euro on €3,000 spend.

So what would I recommend....
Consider the various fuel cards, some give discounts on petrol too, but watch out for annual charges, rates that can't be compared to pump prices, and bank charges for things like direct debits from fuel card companies.

There are some savings to me made, but buyer beware!

I see others have the same problem:
http://www.askaboutmoney.com/showthread.php?t=150791

http://www.boards.ie/vbulletin/showthread.php?t=2057075377

http://www.boards.ie/vbulletin/showthread.php?t=2057260087

Xpro

Thats how they make money, you end up paying more then what the petrol station charges.
DCI is a prime example. They get you onboard, they offer you great rates initially and then they go sky high, generally a good few cents more then standard rates.

If you don't monitor what they charge as generally what bigger companies do, in the long run you end paying way way more.

I got rid of mine, pure scam, never again!

zg3409

My latest text price is much lower now. I will keep a close eye on it.

daveohdave

I gave up on the Topaz card when they switched to 2c below pump. Topaz is always more that 2c above most other garages, usually significantly. I just keep an eye on the local prices now.

pa990

My bank a/c doesn't charge fees, and I have two fuel cards.

The topaz card gives 3.5c off per litre of the pump price and the Esso card gives 4c off per litre.

I chop and charge between the two cards depending on where I am and the local fuel prices.

Sometimes it's cheaper not to use either Esso or Topaz.

If fuel is particularly cheap on a particular week, I'll fill up my jerry cans and not go again to the filing station the following week.

Pumps.ie is a great resource, when it's up and running.


Treat fuel cards like a credit card and make then work for you.

Ps.
Back in the day I got 5c off a litre from statoil.. and I would always use the cheapest statoil.
But those were the days of 85c petrol

zg3409

Quick update.

Around Dublin Diesel was around 1.47 a litre on the signs.
Last week I was quoted by DCI 1.51 but after a phone call quotes are now 1.44 a litre a massive change of 7c per litre after a call, but only a saving of around 3c from a typical station. With the annual fee I'll probably cancel the card.

Bandara

zg3409 wrote: »

Quick update.

Around Dublin Diesel was around 1.47 a litre on the signs.
Last week I was quoted by DCI 1.51 but after a phone call quotes are now 1.44 a litre a massive change of 7c per litre after a call, but only a saving of around 3c from a typical station. With the annual fee I'll probably cancel the card.

Derv is not 1.47 in dublin.

theres absolutely loads of reputable places 1.43 and below (and plently of washed fuel places as well - be careful).

1.44 for Derv is too expensive. Wholesale today is 1.3022

Cleveland Hot Pocket

Even the topaz beside kylemore mcdonalds is 1.42 today for daysul. And that station is the most expensive around imo.

I've seen 1.39 and even below that recently. Hopefully prices are returning down.