HMRC has published new Advisory Fuel Rates (AFRs), effective from December 1, which include changes to the pence per mile (ppm) rates for both diesel and petrol company cars.
AFRs for diesel company cars have all decreased. The rate for a diesel company car with an engine size of more than 2,000cc is cut from 18-17ppm, while the new AFR for a diesel vehicle with an engine from 1,601-2,000cc falls from 14-13ppm.
For diesel cars up to 1,600cc, the new reimbursement rate will be 11ppm, down from 12ppm.
All three rates for petrol company cars have also been cut.
The AFR for petrol vehicles up to 1,400cc decreases by 1ppm, from 13-12ppm, and falls by the same amount for the 1,401-2,000cc bracket, from 15-14ppm.
For vehicles with a petrol engine over 2,000cc, the AFR has been cut by 1ppm, from 24-23ppm.
The advisory electricity rate (AER), used by many electric company car drivers to claim back fuel costs from their employer, remains unchanged at 7ppm.
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 | 139.8 pence | 635.7 pence | 11.2 pence | 11 pence |
| 1601 to 2000 | 49.3 | 139.8 pence | 635.7 pence | 12.9 pence | 13 pence |
| Over 2000 | 38.0 | 139.8 pence | 635.7 pence | 16.7 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 | 134.4 pence | 611.0 pence | 12.0 pence | 12 pence |
| 1401 to 2000 | 42.3 | 134.4 pence | 611.0 pence | 14.4 pence | 14 pence |
| Over 2000 | 27.1 | 134.4 pence | 611.0 pence | 22.6 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.