Fleet News

New HMRC Advisory Fuel Rates from June 1 increased by up to 3p per mile

Forecourt fuel pumps

HMRC has published new Advisory Fuel Rates (AFRs) effective from Wednesday (June 1) for company car drivers claiming back fuel costs from their employer.

The fuel reimbursement rates have been increased by up to 3p per mile (ppm) to reflect record pump prices.

The increase in AFRs comes after the last change in March left employees short-changed within days of being published, having been set before pump prices reached a record high that month.

The average price of a litre of unleaded fuel was, on average, 14% more than the figure used by the Government to set its previous rates, for example.

A litre of diesel had surged even higher, driven in part by the Russian invasion of Ukraine, with forecourts charging 19% more than the pence per litre (ppl) cost employed by the Government department for March's AFRs.

This time around, those record pump prices have been reflected in the new AFRs.

The rates for petrol company cars have all increased, with the AFR for petrol vehicles up to 1,400cc now 14ppm, up from 13ppm. Petrol vehicles with an engine sized from 1,401-2,000cc increase by 2ppm, from 15-17ppm, and those over 2,000cc have seen the biggest increase from 22ppm to 25ppm.

It is a similar story with diesel rates. The diesel rate for company cars with a engine size of more than 2,000cc has been increased by 3ppm, from 16-19ppm, while the AFR rates for diesel cars up to 1,600cc increase from 11ppm to 13ppm.

The AFR for diesel vehicles with an engine from 1,601-2,000cc have also increased by 3ppm, from 13-16ppm.

Meanwhile, the new LPG reimbursement rate for vehicles up to 1,400cc is 9ppm, up from 8ppm. It has also increased by 1ppm, from 10-11ppm, for vehicles with an engine size of 1,401-2,000cc, and from 15-16ppm for LPG vehicles with an engine greater than 2,000cc.

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

The advisory electricity rate (AER) for pure electric cars remains at 5ppm after it was increased for the first time since its introduction from 4ppm when the rates were last reviewed.

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 65.4 63.6 179.7 pence 816.8 pence 12.8 pence 13 pence
1601 to 2000 52.9 51.3 179.7 pence 816.8 pence 15.9 pence 16 pence
Over 2000 43.5 42.1 179.7 pence 816.8 pence 19.4 pence 19 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 54.2 52.7 165.1 pence 750.5 pence 14.2 pence 14 pence
1401 to 2000 46.1 44.9 165.1 pence 750.5 pence 16.7 pence 17 pence
Over 2000 30.8 30.0 165.1 pence 750.5 pence 25.0 pence 25 pence

LPG 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 43.3 42.2 86.8 pence 394.6 pence 9.4 pence 9 pence
1401 to 2000 36.9 35.9 86.8 pence 394.6 pence 11.0 pence 11 pence
Over 2000 24.7 24.0 86.8 pence 394.6 pence 16.4 pence 16 pence
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