Fleet News

HMRC increases Advisory Fuel Rates from December 1 as pump prices soar

HMRC has published new Advisory Fuel Rates (AFRs) effective from Wednesday (December 1) for company car drivers claiming back fuel costs from their employer to keep pace with record prices at the pumps.

Petrol and diesel pence per mile (PPM) rates, as well as all three LPG rates, for all three engine-size ranges have been increased to reflect the rising fuel prices.

The diesel rate for company cars with a engine size of more than 2,000cc increases by 1ppm, from 15ppm to 16ppm. The AFR rates for diesel cars up to 1,600cc and from 1,601-2,000cc also increased by 1ppm, to 11ppm and 13ppm respectively.

For petrol company cars, all three rates have all increased, with the AFR rates for vehicles up to 1,400cc and with an engine of 1,401-2,000cc up by 1ppm, to 13ppm and 15ppm respectively. Petrol company cars with an engine more than 2,000cc have increased by 2ppm, from 20ppm to the new rate of 22ppm.

All fuel rates have also increased for LPG-powered vehicles. The new LPG reimbursement rate for vehicles up to 1,400cc is 9ppm, up from 7ppm, and 10ppm 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 by 3ppm, from 12ppm to 15ppm.

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

The advisory electricity rate (AER) for pure electric cars has also increased for the first time since its introduction from 4ppm to a new rate of 5ppm.

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 63.6 149.8 pence 680.8 pence 10.7 pence 11 pence
1601 to 2000 52.9 51.3 149.8 pence 680.8 pence 13.3 pence 13 pence
Over 2000 43.5 42.1 149.8 pence 680.8 pence 16.2 pence 16 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 52.7 145.9 pence 663.1 pence 12.6 pence 13 pence
1401 to 2000 46.1 44.9 145.9 pence 663.1 pence 14.8 pence 15 pence
Over 2000 30.8 30.0 145.9 pence 663.1 pence 22.1 pence 22 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 80.6 pence 366.4 pence 8.7 pence 9 pence
1401 to 2000 36.9 35.9 80.6 pence 366.4 pence 10.2 pence 10 pence
Over 2000 24.7 24.0 80.6 pence 366.4 pence 15.3 pence 15 pence

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