HMRC has published new Advisory Fuel Rates (AFRs), effective from March 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 increase to the rate for a car with an engine size of up to 1,600cc, from 11-12ppm.
AFR 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 is also only one change to petrol rates from the last quarter. The AFR for petrol vehicles with an engine size from 1,401-2,000cc has increased from 14ppm to 15ppm.
The AFR for petrol vehicles up to 1,400cc remains at 12ppm and the rate for petrol cars with an engine more than 2,000cc stays at 23ppm.
The advisory electricity rate (AER), used by many electric company car drivers to claim back fuel costs from their employer, remains unchanged at 7ppm.
HMRC has published that the current AER is based on an electrical efficiency of 3.57 miles per kilowatt hour and a domestic electricity cost of 25.24 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
| Engine size (cc) | Mean MPG | Fuel price (per litre) | Fuel price (per gallon) | Rate per mile | Advisory fuel rate |
|---|---|---|---|---|---|
| Up to 1600 | 56.9 | 146.1 pence | 664.3 pence | 11.7 pence | 12 pence |
| 1601 to 2000 | 49.3 | 146.1 pence | 664.3 pence | 13.5 pence | 13 pence |
| Over 2000 | 38.0 | 146.1 pence | 664.3 pence | 17.5 pence | 17 pence |
Petrol AFR methodology
| Engine size (cc) | Mean MPG | Fuel price (per litre) | Fuel price (per gallon) | Rate per mile | Advisory fuel rate |
|---|---|---|---|---|---|
| Up to 1400 | 51.0 | 138.7 pence | 630.7 pence | 12.4 pence | 12 pence |
| 1401 to 2000 | 42.3 | 138.7 pence | 630.7 pence | 14.9 pence | 15 pence |
| Over 2000 | 27.1 | 138.7 pence | 630.7 pence | 23.3 pence | 23 pence |
LPG AFR methodology
| Engine size (cc) | Mean MPG | Fuel price (per litre) | Fuel price (per gallon) | Rate per mile | Advisory fuel rate |
|---|---|---|---|---|---|
| Up to 1400 | 40.8 | 98.3 pence | 446.9 pence | 10.9 pence | 11 pence |
| 1401 to 2000 | 33.8 | 98.3 pence | 446.9 pence | 13.2 pence | 13 pence |
| Over 2000 | 21.7 | 98.3 pence | 446.9 pence | 20.6 pence | 21 pence |
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Gareth has more than 20 years’ experience as a journalist having started his career in local newspapers in the 1990s. Prior to joining Fleet News in 2008, he worked in the public sector as a media advisor and is currently news editor at Fleet News.
Capt_Slow - 25/08/2022 11:26
Absolute disgrace once again from this government. Absolutely out of touch with the day to day functions of the normal people in this country. Fuel at rates that this country has never seen before and they offer 1ppm on top of the measly amount they gave 3 months ago. Thankfully I work for a company who values their employee's and has agreed to pay the mobile staff 1.5x the government figures for business miles covered.