In New Zealand, fuel discount days are common, with stations like Z, BP, and Caltex offering regular promotions to attract customers. For businesses trying to cut fuel costs, these discounts may seem like an easy win. But are the savings as substantial as they seem? Or are there hidden costs that actually make discount days more expensive? This article explores the real cost of fuel discount days, from benefits to potential drawbacks, and also looks at some smarter options for managing fuel expenses.
What Are Fuel Discount Days?
Fuel discount days offer a set price reduction on specific days, typically between 6 and 10 cents per litre. Programs such as Z Energy and Caltex’s Pumped Program – are designed to encourage drivers to plan their fuel purchases around these promotional days. These 6 to 10 c/l off discounts appear simple and like you’re saving money, but the real cost-benefit can vary significantly depending on your business.
The Perceived Benefits of Fuel Discounts
Fuel discount days seem like a win for your wallet for two main reasons: they help save money on fuel and add a bit of convenience. For businesses that rely on multiple vehicles, even a small discount of 6 to 10 cents per litre can make a difference over time, gradually lowering fuel costs.
Plus, sticking to discount days can create a steady routine for refuelling — employees know when and where to fill up, which adds some predictability to managing fuel needs. But it’s worth asking: do these discount days actually give businesses the consistent savings and ease they’re hoping for in the long run? And more importantly, are they actually costing your business?
How Fuel Discount Days Can Actually Cost Your Business More
While fuel discount days in theory offer savings, there are hidden costs that can impact your business’s efficiency and bottom line.
- Time spent queuing and planning. Discount days often lead to long lines at fuel stations, which can mean lost time and productivity. As ZealousCat22 put it in a Reddit thread: “AFAIC 10cpl discount day is actually 4cpl discount day, because it’s always 6cpl off anyway so this is just an additional 4cpl, and personally I’m not going to queue for 15mins to save $2.” For businesses, this queuing time could be better spent on other essential business activities.
- Encourages overbuying. With discount days, it’s tempting to buy more fuel than necessary. This can disrupt cash flow, particularly if the fuel isn’t used right away. As pleiadeslion said in the same Reddit thread, “All this exists because people believe they’re saving… but businesses wouldn’t offer it unless it caused us to spend more overall.”
- Budgeting and cash flow challenges. Planning fuel purchases around discount days can make cash flow and budgeting less predictable. Since the price reduction only occurs on certain days, fuel expenses may spike or drop based on timing rather than actual need.
Are You Really Making Any True Cost Savings?
Do fuel discount days genuinely save money, or could businesses do better with other strategies? Here are some tips for assessing if fuel discount days are worth it for your business.
Compare prices with budget stations
Some year-round budget-friendly stations, such as NPD or Waitomo, often have consistently low prices that may rival or beat the discount day rates at other brands.
On the Reddit thread, user jjeeves_nz said, “I just go to NPD as it is far more convenient for me and cheaper as it is.”
Consider price fluctuations on discount days
There are reports of slight price increases leading up to discount days, which can reduce the actual value of the discount. Legendary_J0SH shared, “I have personally witnessed price increases of 4 to 10 cents on discount days.” So, it’s a good idea to stay wary and compare prices with other stations in the area.
Your business and fleet size matters
Consider a small business with a $1,000 monthly fuel budget. While filling up on discount days might seem like a good way to save, it doesn’t always lead to the biggest savings – especially if your employees waste time queuing, or overbuy just because it’s “cheap”. If a small business spending $1,000 a month on fuel compares its costs on discount days to the consistently lower prices at budget stations, it might find that sticking with a budget station actually saves more over time. Sometimes, a steady low price beats the occasional discount.
Alternative Strategies for Saving on Fuel
If timing fuel-ups around discount days is more of a hassle than a help to your business, there are some other options that might be more cost-effective.
Fuel comparison apps
Apps like Gaspy show the lowest prices around you each day, so you can find the best deals without needing to wait for specific discount days.
Fuel card programs
Some fuel stations offer fuel cards with consistent discounts every time you fill up, without having to plan around specific days. Fuel cards have the added benefit of detailed spending reports, making it easier to track and manage fuel expenses across your vehicles, which can be a big help for budgeting.
Compare NZ fuel card offerings & discounts here.
Bulk purchasing and storage
For businesses that go through a lot of fuel, buying in bulk and storing it on-site can be a good solution. This way, you aren’t tied to discount days and can control costs with steady, upfront savings.
Ready to Simplify Your Fuel Savings?
If you’re looking for a simpler way to save on fuel, fuel cards offer consistent discounts, detailed tracking, and less hassle than timing discount days. Find out if your business is eligible for a fuel card program that fits your needs – it’s the first step toward smarter and bigger fuel savings that can ultimately improve your bottom line.
Nov 05, 2024
Compare Fuel Cards NZ Team
Last updated Nov 05, 2024