HMRC has published new Advisory Fuel Rates (AFRs), effective from June 1, which include some changes to the pence per mile (ppm) rates for both diesel and petrol company cars.
Diesel Company Car AFRs
AFRs for diesel company cars have stayed the same, apart from a 1p decrease to the rate for a car with an engine size of up to 1,600cc, which drops from 12ppm to 11ppm.
The rates for:
- Over 2,000cc remain at 17ppm
- 1,601–2,000cc remain at 13ppm
Petrol Company Car AFRs
There are two changes for petrol vehicles this quarter:
- 1,401–2,000cc engines drop from 15ppm to 14ppm
- Over 2,000cc drop from 23ppm to 22ppm
The rate for petrol cars up to 1,400cc remains unchanged at 12ppm.
Electric and LPG Rates
Advisory Electricity Rate (AER)
The Advisory Electricity Rate (AER), which is used by electric company car drivers to claim fuel costs, remains unchanged at 7ppm.
This rate is based on an electrical efficiency of 3.57 miles per kilowatt hour and a domestic electricity cost of 25.64 pence per kilowatt hour.
LPG Vehicle AFRs
Rates for LPG (Liquefied Petroleum Gas) vehicles also remain the same.
The AFR for LPG vehicles are as follows:
- Up to 1,400cc: Remain at 11ppm
- 1,401–2,000cc: Remain at 13ppm
- Over 2,000cc: Remain at 21ppm
Hybrid Cars
Hybrid vehicles continue to be classified as either petrol or diesel for AFR purposes.
These updates provide employers with revised guidance on reimbursing employees for fuel costs while reflecting current market trends in fuel prices.
Employers should ensure these new rates are implemented for claims starting June 1 2025.
AFR Rate Tables
Diesel AFR Methodology
| Engine size (cc) | Mean MPG | Fuel price (per litre) | Fuel price (per gallon) | Rate per mile | AFR |
|---|---|---|---|---|---|
| Up to 1600 | 56.9 | 140.1p | 636.7p | 11.2p | 11p |
| 1601 to 2000 | 49.3 | 140.1p | 636.7p | 12.9p | 13p |
| Over 2000 | 38.0 | 140.1p | 636.7p | 16.8p | 17p |
Petrol AFR Methodology
| Engine size (cc) | Mean MPG | Fuel price (per litre) | Fuel price (per gallon) | Rate per mile | AFR |
|---|---|---|---|---|---|
| Up to 1400 | 51.0 | 133.2p | 605.5p | 11.9p | 12p |
| 1401 to 2000 | 42.3 | 133.2p | 605.5p | 14.3p | 14p |
| Over 2000 | 27.1 | 133.2p | 605.5p | 22.3p | 22p |
LPG AFR Methodology
| Engine size (cc) | Mean MPG | Fuel price (per litre) | Fuel price (per gallon) | Rate per mile | AFR |
|---|---|---|---|---|---|
| Up to 1400 | 40.8 | 98.3p | 446.9p | 10.9p | 11p |
| 1401 to 2000 | 33.8 | 98.3p | 446.9p | 13.2p | 13p |
| Over 2000 | 21.7 | 98.3p | 446.9p | 20.6p | 21p |