HMRC cuts some advisory fuel rates from June

HMRC has published new advisory fuel rates (AFRs), effective from June 1, which include some changes to the pence per mile (ppm) rates for both diesel and petrol company cars.

AFRs for diesel company cars have stayed the same apart from a penny decrease to the rate for a car with an engine size of up to 1,600cc, from 12-11ppm. 

AFRs for diesel vehicles with an engine from 1,601-2,000cc and more than 2,000cc remain the same at 13ppm and 17ppm, respectively.

There are two changes to petrol rates from the last quarter. The AFR for petrol vehicles with an engine size from 1,401-2,000cc has been cut from 15ppm to 14ppm. 

The AFR for petrol vehicles with an engine more than 2,000cc has also been cut by a penny, from 23ppm to 22ppm.

The AFR for a petrol-powered car up to 1,400cc remains unchanged from the last quarter at 12ppm.

The advisory electricity rate (AER), used by many electric company car drivers to claim back fuel costs from their employer, also remains unchanged at 7ppm.

HMRC says that the current AER is based on an electrical efficiency of 3.57 miles per kilowatt hour and a domestic electricity cost of 25.64 pence per kilowatt hour.

The rates for LPG vehicles also remain unchanged, staying at 11ppm for vehicles up to 1,400cc, 13ppm for vehicles with an engine size of 1,401-2,000cc, and at 21ppm for vehicles with an engine greater than 2,000cc.

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

Full tables and rates are available on our Fleet FAQ page. 

Diesel AFR methodology

Petrol AFR methodology  

LPG AFR methodology