HMRC Advisory Fuel Rates

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HMRC increases Advisory Fuel Rates for diesel and LPG cars from December 2018

HM Revenue and Customs (HMRC) has increased its mileage rates for diesel and LPG engined cars, while the rates for petrol engined and electric vehicles remain unchanged, in the latest quarterly Advisory Fuel Rates.

Under the new AFR rates, which are effective for the three months from December 1, there are no changes to the rates for petrol cars, but the rate for diesel cars, with an engine above 2.0 litres, increases by 1p per mile (ppm), from 13ppm to 14ppm. All other diesel rates remain unchanged.

There is also a 1ppm increase for LPG vehicles with an engine of 1.4 litres or less, from 7ppm to 8ppm, and for LPG vehicles with an engine from 1.6 to 2.0 litres from 9ppm to 10ppm. LPG vehicles with an engine above 2.0 litres will see a 2ppm increase from December 1, from 13ppm to 15ppm.

The advisory electricity rate (AER) first introduced in September for plug-in electric cars remains unchanged at 4ppm.

The increases are relevant as the company car advisory fuel rates are used by organisations to reimburse drivers for fuel used in incurring business, rather than private mileage. Companies can use the old rates for up to one month from the date the new rates apply.

The company car mileage reimbursement rates are based on current petrol and diesel prices from the Department for Energy and Climate Change, with the LPG taken from the UK average price from the AA website in the previous month.

In the absence of any specific rates for plug-in electric hybrid cars (PHEVs), they are treated as either petrol or diesel cars for this purpose.

Rates from December 1:

Engine sizePetrolLPG
1400cc or less12p8p
1401cc to 2000cc15p10p
Over 2000cc22p15p
Engine sizeDiesel
1600cc or less10p
1601cc to 2000cc12p
Over 2000cc14p

The previous rates which can be used for another month from the date the new rates apply, were:

Engine sizePetrolLPG
1400cc or less11p7p
1401cc to 2000cc14p9p
Over 2000cc22p13p
Engine sizeDiesel
1600cc or less10p
1601cc to 2000cc12p
Over 2000cc13p


By |November 26th, 2018|Categories: Driving, Fleet|Comments Off on HMRC Advisory Fuel Rates