New Advisory Fuel Rates (AFRs) have been published by HMRC for company car drivers claiming back fuel costs from their employer.

The new fuel reimbursement rates, which come into force from Friday, March 1, see both petrol and diesel rates fall, while the advisory electricity rate (AER) remains the same at 9 pence per mile (ppm), after being cut in the last quarterly review.

Elsewhere, the diesel AFR for company cars have all been cut by 1ppm thanks to lower pump prices used by HMRC to determine the rates.

A diesel company car with an engine size of more than 2,000cc falls from 20-19ppm, while the new AFR for a diesel vehicle with an engine from 1,601-2,000cc is cut from 15-14ppm.

For diesel cars up to 1,600cc, the new reimbursement rate will be 12ppm, down from 13ppm. 

All three rates for petrol company cars have also been cut. 

The AFR for petrol vehicles up to 1,400cc decreases by 1ppm, from 14-13ppm, and falls by the same amount for the 1,401-2,000cc bracket, from 16-15ppm.

For vehicles with a petrol engine over 2,000cc, the AFR has been cut by 2ppm, from 26-24ppm. 

The rates for LPG vehicles, meanwhile have all been increased, with vehicles up to 1,400cc increasing by 1ppm, from 10-11ppm, and from 12-13ppm for vehicles with an engine size of 1,401-2,000cc.

LPG vehicles with an engine greater than 2,000cc see a 3ppm increase, from 18-21ppm.

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

Full tables are available on our Fleet FAQ page. 

Diesel AFR methodology

Petrol AFR methodology  

LPG AFR methodology