Fleet News

HMRC publishes new Advisory Fuel Rates (AFRs) effective from March

Fuel pumps, petrol station pumps.

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

There are changes to both the petrol and diesel AFR pence per mile (PPM) rates.

The diesel rate for company cars up to 1,600cc increases by 1ppm to 9ppm, while there is also a 1ppm rise for diesel vehicles from 1,601-2,000cc, with a new rate of 11ppm. The AFR rate for diesel cars above 2,000cc remains unchanged at 12ppm.

For petrol company cars, the rate for for vehicles up to 1,400cc remains unchanged, while the rates for vehicles from 1,400-2,000cc and over 2,000cc increases by 1ppm to 12ppm and 18ppm, respectively.

All fuel rates remain unchanged for LPG-powered vehicles.

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.

The changes come as the RAC warns that petrol and diesel pump prices could rise by 10p per litre as the price of oil hits a 13-month high.

Analysts are predicting dramatic fuel price hike as the price of a barrel of oil is set to soar from $64 to $80. 

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

125.0 pence

568.3 pence

8.6 pence

9 pence

1601 to 2000

57.9

53.4

125.0 pence

568.3 pence

10.6 pence

11 pence

Over 2000

49.8

45.8

125.0 pence

568.3 pence

12.4 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

120.5 pence

547.9 pence

10.4 pence

10 pence

1401 to 2000

48.2

44.6

120.5 pence

547.9 pence

12.3 pence

12 pence

Over 2000

32.7

30.3

120.5 pence

547.9 pence

18.1 pence

18 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

64.2 pence

291.9 pence

6.9 pence

7 pence

1401 to 2000

38.5

35.7

64.2 pence

291.9 pence

8.2 pence

8 pence

Over 2000

26.2

24.2

64.2 pence

291.9 pence

12.0 pence

12 pence


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