Fleet News

Fleets re-examine free fuel for private mileage

THE days of fleets providing company car drivers with free fuel for private motoring look seriously numbered, according to two new surveys. These have found that the double whammy of rising pump prices and benefit-in-kind tax changes is convincing companies that it is no longer a cost-effective benefit to give drivers free fuel for private mileage.

A survey of 353 fleet decision-makers by Fleet News in conjunction with contract hire and leasing company Alphabet discovered that 24.9% of them would withdraw the provision of free fuel for private use if fuel duty rose significantly. This position was reinforced by research carried out by accountant KPMG which found that more than a quarter of the 254 managing directors, finance directors and financial controllers questioned were reviewing the free fuel perk.

Nearly 83% of the companies surveyed offer free fuel to at least some of their employees, and 34% of larger firms give all their company car drivers free fuel for both business and private miles.

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