New Advisory Fuel Rates Published

Feb 23, 2023

HM Revenue and Customs (HMRC) has recently released updated Advisory Fuel Rates (AFRs) for company car drivers who claim fuel expenses from their employer. Effective from March 1st, the updated rates consist of several changes, including a 1 penny per mile (ppm) rise in the advisory electricity rate (AER) for electric company cars. Previously, the AER was increased from 5ppm to 8ppm on December 1st, but HMRC has changed the method of calculation to better reflect prices, and now includes the Office for National Statistics' quarterly index for domestic electricity. While the AER has increased from 8-9ppm, the AFRs for petrol, diesel and LPG cars have reduced, reflecting falling fuel prices. Petrol AFRs for vehicles up to 1,400cc have reduced from 14ppm to 13ppm, while diesel rates for company cars with an engine size of more than 2,000cc have reduced from 22-20ppm. Hybrid cars are treated as either petrol or diesel cars for AFR purposes.

Diesel AFR methodology

Petrol AFR methodology

LPG AFR methodology