Fleet News

HMRC publishes new Advisory Fuel Rates (AFRs) effective from June 1

Fuel pumps, petrol station pumps.

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

There are changes to petrol, diesel and LPG pence per mile (PPM) rates.

The diesel rate for company cars with a engine size of more than 2,000cc increases by 1ppm, from 12ppm to 13ppm. The AFR rates for diesel cars up to 1,600cc and from 1,601-2,000cc remain unchanged at 9ppm and 11ppm, respectively.

For petrol company cars, all three rates have increased by 1ppm, meaning the AFR rate for vehicles up to 1,400cc is 11ppm, while cars with an engine of 1,401-2,000cc and more than 2,000cc have a rate of 13ppm and 19ppm, respectively.

All fuel rates have also been increased for LPG-powered vehicles. The new LPG reimbursement rate for vehicles up to 1,400cc is 8ppm, up from 7ppm, and 9ppm for vehicles with an engine size of 1,401-2,000cc, up from 8ppm. The AFR rate for LPG vehicles with an engine greater than 2,000cc increases 2ppm, from 12ppm to 14ppm.

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 65.9 131.0 pence 595.7 pence 9.0 pence 9 pence
1601 to 2000 57.9 53.4 131.0 pence 595.7 pence 11.2 pence 11 pence
Over 2000 49.8 45.8 131.0 pence 595.7 pence 13.0 pence 13 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 52.7 127.2 pence 578.2 pence 11.0 pence 11 pence
1401 to 2000 48.2 44.6 127.2 pence 578.2 pence 13.0 pence 13 pence
Over 2000 32.7 30.3 127.2 pence 578.2 pence 19.1 pence 19 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 45.6 42.2 73.6 pence 334.6 pence 7.9 pence 8 pence
1401 to 2000 38.5 35.7 73.6 pence 334.6 pence 9.4 pence 9 pence
Over 2000 26.2 24.2 73.6 pence 334.6 pence 13.8 pence 14 pence

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