- Latest advisory fuel rates have been announced
- All rates have been reduced to reflect fall in petrol prices
- You can still use the previous rates 'til April 1
HM Revenue and Customs (HMRC) has released the latest Advisory Fuel Rates (AFRs) which will come into effect from March 1, 2015.
With fuel prices still continueing to fall, it will come as little surprise that HMRC has reduced rates by as much as three pence per litre (ppl) across the board to reflect it.
Petrol, diesel and LPG rates have all fallen, and petrol has the biggest fall of 3ppl for engines of sizes between 1,401-2,000cc and over 2,000cc.
Diesel has now slipped below 10ppl for engines of 1,600cc or less, and LPG sees the smallest fall by 1ppl for engines 1,400cc or less and between 1,400cc-2,000cc.
AFRs are recommended guidelines for businesses to set for their drivers when claiming expenses for business miles. It is not mandatory to follow the guidelines but the majority of companies do.
Fuel prices are far from stable at the moment, but the reduction in AFR will install some confidence that the prices are expected to stay pretty low for the foreseeable future.
You can still use the previous rates for up to one month from the date the new rates apply.
These rates are reviewed quarterly and the latest AFRs apply to journeys made on or after March 1. For one month from the date of the change employers may use either the previous or new current rates as they choose.
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The new rates are as follows:
1,400cc or less - 11p (down by 2p)
1,401-2,000cc - 13p (down 3p)
Over 2,000cc - 20p (down by 3p)
1,600cc or less - 9p (down by 2p)
1,601-2,000cc - 11p (down by 2p)
Over 2,000cc - 14p (down by 2p)
1,400cc or less - 8p (down 1p)
1,401-2,000cc - 10p (down 1p)
Over 2,000cc - 14p (down 2p)