Unleaded petrol prices are predicted to reach 123p per litre by the end of 2010, according to Petrol Retailers’ Association forecasts.

The news will put fuel management back on the agenda for fleet managers under pressure to cut costs.

Electric vehicle manufacturer Aixam Mega argues that adding electric vehicles into the fleet will enable much larger savings to be achieved than petrol and diesel management policies alone could hope to achieve.

Aixam Mega’s national sales manager in the UK, Justin Bond,says using electric vehicles as pool cars for short-hop urban journeys, or electric vans for light tasks such as deliveries and recycling runs, for example, would cut out many of the frequent stop-start journeys that really eat up fuel in petrol and diesel powered cars and vans.

“Even before these massive hikes in road fuel prices a standard saloon car cost around 20p per mile to run, compared with less than 2p per mile for one of our electrics.

“The differential will increase significantly over the coming months. Standard fuel management programmes can save a business in the region of five to ten per cent off their fuel costs, and we would argue that businesses can improve this significantly by saving their petrol and diesel cars and vans for longer journeys.”

Savings on fuel are further boosted by reduced costs for vehicle servicing, insurance and Road Tax. In London, electric vehicles are also exempt from the Congestion Charge and from parking charges in some boroughs.

Justin said: “Electric vehicles offer businesses the chance to make some huge savings at a time when motoring costs are rising fast.

“As the government presses ahead with legislation to make businesses reduce their CO2 emissions, such as the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, they also provide cost-effective ways to meet the environmental challenges ahead.”