INDUSTRY experts have urged fleet operators to ensure they have a sound policy to control fuel use and fuel costs, while leading 'green' fleet managers said the Chancellor's Budget boost for gas powered vehicles and ultra low sulphur diesel would spur increased consideration of vehicles powered by alternative fuels.

The RAC said a combination of cuts in the road budget, a 3p a litre/14p a gallon rise in petrol and diesel, £5 rise in VED and a 1.5% hike in Insurance Premium Tax would affect company car drivers and fleet operators more than any other sector of society. The motoring organisation calculated that increases in fuel, vehicle excise duty and IPT alone would add another £107 to the annual running cost of a 1.8-litre business car driven by a company rep clocking up 20,000 business miles a year.

And there was a post-Budget warning from PHH Vehicle Management Services that the 'quiet budget' in the run-up to next year's general election could be the calm before the storm, with managing director David Knight predicting: 'Whichever party is in power after the next election is likely to hit the fleet industry in a big way.'