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Advisory fuel rates published

  • Advisory fuel rates up by an average of 2p per mile
  • Extra band introduced for small diesel engines
  • Bands will now be published quarterly

New advisory fuel rates for fleet drivers have been published, and will take effect from June 1.

Company car drivers will see the amount of cash they can claim in fuel expenses go up by an average of 2p per mile. The figures, released by HMRC (Her Majesty's Revenue and Customs), are known as Advisory Fuel Rates (AFRs).

As expected, there's a new band for diesel cars catering for vehicles with engines up to and including 1,600cc. Slotting into this band means you'll be able to claim 12p per mile.

For diesel cars in what is now the middle band, with engines between 1,601cc and 2,000cc, the amount you can claim has gone up from 13p to 15p. In the top diesel band for cars with engines over 2,000cc the fuel rate is now 18p per mile, up from 16p.

As far as petrol company cars are concerned, a vehicle with an engine bigger than 2,000cc will qualify for 26p per mile (up 3p from last year). If your engine is between 1,401cc and 2,000cc you'll get 18p per mile and 15p for less than 1,400cc.

The company car AFRs for LPG cars have gone up by 1p per mile on all three bands.

As we reported previously, the AFRs will now be reviewed quarterly rather than bi-annually, although HMRC has decided to go back on its commitment to make interim changes if fuel prices change by more than 5%.

The average miles per gallon for both petrol and diesel have also been reduced by 15% rather than the proposed 10%, bringing it in line with the method used by the Energy Saving Trust. The reason for this change is to bring MPG figures quoted by car manufacturers closer to those attainable in real-world driving conditions rather than optimising cars just for MPG testing.



Fuel type Band Cost now Increase
Petrol sub-1,400cc 15p 2p
  1,401cc-2,000cc 18p 2p
  2,000cc+ 26p 3p
Diesel sub-1,600cc 12p 1p
  1,601cc-2,000cc 15p 2p
  2,000cc+ 18p 2p
LPG sub-1,400cc 11p 1p
  1,401cc-2,000cc 13p 1p
  2,000cc+ 18p 1p