HMRC has published new advisory fuel rates (AFRs) effective from Tuesday (September 1) for company car drivers claiming fuel costs.

The AFR pence per mile (PPM) petrol rates remain unchanged as do two of the rates for diesel cars (1600cc or less and over 2000cc).

However, the diesel AFR for company cars with an engine size from 1601cc to 2000cc has increased from 9ppm to 10ppm, after falling from 11ppm in March to 9ppm this quarter (June to August).

The average pump price for diesel is currently 118.3p per litre (petrol is 114.7ppl). At the beginning of March, the average price of diesel was 126.4ppl (petrol was 123.4ppl).

At the beginning of June, the average pump price had fallen to 111.9ppl and 107ppl for diesel and petrol, respectively.

The AFRs effective from September 1 for diesel have been based on an average pump price of 118ppl (petrol 113ppl) – see below.

June’s AFRs were based on an average diesel pump price of 112.2ppl.

The only other changes from June to September’s new AFRs was with two of the LPG rates. The AFR for LPG company cars with an engine from 1401cc to 2000cc remains the same at 8ppm, but it increases by 1ppm for engine sizes 1400cc or less and over 2000cc, up to 7ppm and 12ppm respectively.  

Hybrid cars are treated as either petrol or diesel cars for AFR purposes.

The advisory electricity rate (AER) for plug-in cars remains unchanged at 4ppm.

Full tables are available on our Fleet FAQ page.

Diesel AFR methodology

Engine size (cc)	Mean MPG	Applied MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1600	71.3	65.9	118.0 pence	536.4 pence	8.1 pence	8 pence
1601 to 2000	57.9	53.4	118.0 pence	536.4 pence	10.1 pence	10 pence
Over 2000	49.8	45.8	118.0 pence	536.4 pence	11.7 pence	12 pence

Petrol AFR methodology

Engine size (cc)	Mean MPG	Applied MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	57.0	52.7	113.0 pence	513.9 pence	9.7 pence	10 pence
1401 to 2000	48.2	44.6	113.0 pence	513.9 pence	11.5 pence	12 pence
Over 2000	32.7	30.3	113.0 pence	513.9 pence	17.0 pence	17 pence