You’re likely interested in the HMRC’s Advisory Fuel Rates (AFRs). These are used to calculate how much you can reimburse employees for business travel in their company cars. They are also used if employees cover the cost of fuel for business travel in their own vehicles.
Here’s a summary of the key information about HMRC fuel rates for petrol and diesel:
Changes from 1 March 2025
HMRC has announced new Advisory Fuel Rates that come into effect from 1 March 2025. Here’s a quick overview of the changes:
- Diesel:
- Cars with engines up to 1,600cc will see a 1 pence per mile (ppm) increase, from 11ppm to 12ppm.
- Rates for larger diesel engines remain the same.4
- Petrol:
- Only cars with engine sizes between 1,401-2,000cc will see a change, with rates increasing from 14ppm to 15ppm.
Full Breakdown of Rates from 1 March 2025
Here’s a table summarizing the new rates:
| Engine Size | Petrol (pence per mile) | Diesel (pence per mile) |
| 1400cc or less | 12 | 12 |
| 1401cc to 2000cc | 15 | 13 |
| Over 2000cc | 23 | 17 |
Important Notes:
- Hybrid Cars: Hybrid cars are treated as either petrol or diesel vehicles for AFR purposes, depending on their engine type.
- Previous Rates: You can use the previous rates for up to one month after the new rates apply.
- Electric Cars: The advisory electricity rate for electric company car drivers remains at 7ppm.
- Fuel Prices: These rates are based on average fuel prices. HMRC reviews these rates quarterly, so they can change.
Where to find more information:
- HMRC Website: You can find the full details of the Advisory Fuel Rates on the official HMRC website. Just search for “Advisory Fuel Rates” on gov.uk.
I hope this information is helpful! If you have any more questions, feel free to ask.