The deal was awarded by the National Procurement Service (NPS) following a competitive procurement process to find a more cost-effective provider.

UK Fuels won the business after it demonstrated it could deliver significant savings with its fuel cards. It provides fixed weekly pricing, rather than pump prices, and this gives a standard price across the whole of Wales.

CEO and founder of UK Fuels Bill Holmes said: “It’s a challenging time for the UK public sector and ‘efficiency savings’ have become the catch-all answer for organisations like the NPS, blue light services and housing associations to ensure they can continue providing their vital services at reduced costs.

“The NPS approached us as they were looking for a fuel card provider with the right products and services for their organisation. We listened to their needs and provided a solution that worked for them both now and in the future.”

As part of the initial phase UK Fuels is supplying fuel cards for 17 NPS members and the body will be re-engaging with its remaining members later in 2016 with the recommendation that they consider moving to this solution.

The 17 participating organisations have around 4,000 fuel cards in circulation and purchased 3.8 million litres of diesel in 2014, which gave them an approximate spend of £4.8m.

The Crown Commercial Service (CCS) provided independent assistance to the NPS on appointing a new fuel card supplier.

Tony Demaine, from the CCS, said: “The NPS for Wales conducted a Further Competition for their fuel card requirement using the CCS Framework Agreement RM1027” and added that it “achieved considerable savings overall”.