Increasing fuel costs – Repsol provide interesting approch
With recent events in Ukraine, the world has faced a sharp rise in fuel prices. This applies to individuals and business. Here in Ireland where I live, our government has reduced the taxes on fuels, which in turn reduce the at pump price.
Repsol, a Spanish company has taken an interesting initiative. They have reduced prices of fuel by 10c per litre, but only if you pay using their app Waylet. Thinking as a management accountant, I am thinking this is quite smart on their part. I am guessing, but I would assume that paying via the Waylet app reduces many costs – such as payment processing fees, or cash handling fees for example. Thinking as a manager with a more strategic hat on, maybe Repsol are attempting to make all payments cashless, and this is a way to move more people towards their Waylet platform. Regardless, I would be confident the reduction of 10c in price is compensated by an equal cost saving somewhere.