Beyond the Pump: Why Sydney’s Smartest Fleets Are Moving Away from Fuel Cards
By Dan Matthews, Head of Product APW2U
For years, fuel cards have been the go-to solution for Sydney’s logistics, transport, and construction businesses. They offer convenience, tracking, and discounts—but are they really the best option?
As someone who has worked in both fleet operations and the fuel industry, I know how fuel providers structure their pricing. Many businesses assume they’re getting a good deal, but fuel cards are still tied to unpredictable retail prices, hidden fees, and inefficiencies.
More and more fleet operators are moving to on-site fuelling, a model that removes the uncertainty of retail pricing and puts businesses back in control.
What This Article Covers:
- The real cost of fuel cards and why the retail price cycle works against you
- Hidden fees and inefficiencies that most fleet managers overlook
- How on-site fuelling delivers price stability, efficiency, and cost savings
The Retail Fuel Price Cycle – The Hidden Cost of Fuel Cards
One of the biggest misconceptions about fuel cards is that they guarantee consistent savings. The truth is that most fuel cards base their pricing on fluctuating retail fuel prices.
How the Retail Fuel Cycle Works in Australia
Australia’s retail fuel market operates in cycles, with prices spiking every four to six weeks before gradually dropping again. If you’re using a fuel card, your price is tied to this cycle.
Example (February 2025 – Sydney Diesel Prices):
- Ampol Terminal Gate Price (TGP) as of 4 February in Sydney: $1.79 per litre.
- Retail Pump Price (Ampol Foodary Pendle Hill): $2.06 per litre
- Fuel Card Price (10-cent discount applied): $1.96 per litre
- APW2U On-Site Fuelling: $1.79 per litre plus minimal delivery costs
Even with a fuel card, businesses are still paying retail markups—sometimes up to 20 cents more per litre than wholesale rates.
On-site fuelling removes this uncertainty by following wholesale fuel pricing, meaning fleets pay consistently lower prices without retail fluctuations.
Do the Maths Yourself
Try this right now:
- Google “Ampol TGP” to check today’s Terminal Gate Price for diesel.
- Compare it to the Fuel Check NSW website or your local service station’s price.
- Now, imagine your fleet paying wholesale prices instead of fluctuating retail prices. How much would you save per month?
The Downsides of Fuel Cards – Hidden Costs and Lost Time
Fuel cards seem simple, but most businesses don’t realise the hidden financial drains they create.
Exposure to Retail Price Fluctuations
- Fuel cards follow retail pricing, so when prices spike, your costs go up too.
- Even with discounts, businesses often pay significantly more than wholesale rates.
- On-site fuelling provides predictable pricing, making budgeting easier.
Transaction Fees and Admin Costs
- Many fuel card providers charge per-transaction fees, monthly admin costs, and late payment penalties.
- For large fleets, these small fees add up to thousands per year.
- With on-site fuelling, you pay only for the fuel you use—no hidden fees.
Wasted Time and Lost Productivity
- Every time a driver leaves their route to refuel, it adds extra kilometres, delays, and labour costs.
- A driver refuelling twice a week for 15 minutes loses over 50 hours per year.
- On-site fuelling eliminates this lost time—fuel comes to your depot, so drivers stay on schedule.
Risk of Fuel Theft and Misuse
- Fuel cards can be misused for personal vehicles or non-fuel purchases.
- Businesses must constantly audit transactions to detect fraud.
- On-site fuelling eliminates this risk—only authorised vehicles can refuel.
Real-World Example: A Sydney Fleet That Switched from Fuel Cards to On-Site Fuelling
Company Profile: Mid-sized delivery fleet with 25 trucks in Western Sydney.
Their Challenges with Fuel Cards:
- Fuel costs fluctuating too much due to retail pricing cycles
- Drivers losing more than five hours per week refuelling off-route
- Difficulties tracking fuel fraud and unauthorised purchases
The Results After Switching to On-Site Fuelling:
Fuel Savings:
- Previous fuel card cost: $2.06 per litre (retail pricing)
- On-site fuelling cost: $1.79 per litre (wholesale pricing)
- Savings per truck: $0.28 per litre × 1,000 litres per month = $280 per truck per month
- Total fleet savings: $84,000 per year
Reduced Driver Downtime:
- Refuelling time saved: 16 hours per month
- Labour cost recovered: $29,000 per year
Eliminated Fuel Theft and Misuse:
- A 5% reduction in fuel fraud saved the company another $10,000 annually
Total Annual Savings After Switching to On-Site Fuelling: $123,000
Why More Businesses
Are Moving to On-Site Fuelling
Smart fleets are ditching fuel cards because on-site fuelling offers:
- Predictable, Wholesale Fuel Pricing – No more retail fluctuations or markups
- No Transaction Fees – You only pay for fuel, with no extra costs
- Zero Downtime for Refuelling – Fuel is delivered directly to your depot
- Full Fuel Usage Control – No fraud, no misuse—just complete transparency
Should Your Business Rethink Fuel Cards?
If your fleet relies on fuel cards, ask yourself:
- How much time do drivers waste refuelling off-route?
- How often do you pay unpredictable fuel prices?
- How confident are you that fuel fraud isn’t costing you money?
If you’re unsure—or want a fuel cost analysis for your fleet—let’s chat.
Contact me to book a free consultation.
Dan Matthews
Head of Product APW2U
