Fleet News

New Advisory Fuel Rates fail to recognise impending duty rise

Company car drivers will see the amount of cash they can claim stay the same after HM Revenue and Customs (HMRC) published new advisory fuel rates (AFRs) today.

The rates, which businesses use to repay drivers for fuel used on business mileage, take effect from Thursday (December 1) and are reviewed on a quarterly basis.

HMRC increased the rates in June and changed how often they would be reviewed after pressure from ACFO and a backdrop of rising pump prices.

However, the rates from September to December stayed exactly the same apart from a 1p per mile decrease for LPG fuelled cars with an engine size from 1401cc to 2000cc.

And these latest AFRs, effective from Thursday, have again stayed the same apart from a 1p per mile decrease for LPG fuelled cars with an engine size 1400cc or less.

ACFO has raised concerns that if the planned hike in fuel duty goes ahead in January, fleets will have to wait until the next review at the end of February for the 3p per litre increase to be reflected in AFRs.

The new rates are shown below (old rates in brackets):


1400cc or less 15p (15p)
1401cc to 2000cc 18p (18p)
Over 2000cc 26p (26p)


1600cc or less 12p (12p)
1601cc to 2000cc 15p (15p)
Over 2000cc 18p (18p)


1400cc or less 10p (11p)
1401cc to 2000cc 12p (12p)
Over 2000cc 18p (18p)

For further information on AFRs visit the HMRC website.

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