HMRC has published latest Advisory Fuel Rates, introducing lower rates across all diesel car categories but retaining the current Advisory Electricity Rate.

Advisory Fuel Rates fall across all diesel car categories from 1 June

The new fuel rates, used for reimbursing employees’ fuel costs while driving a company car on business, are effective from 1 June 2023 and bring a one pence per mile fall for small and midsize diesel engines and a 2ppm fall for larger ones. Petrol rates stay static but the rates for midsize and larger LPG vehicles drop.

The latest rates reflect the recent fall in fuel prices; including diesel dropping below 155p a litre for this first time since the end of February 2022.

But HMRC has kept the Advisory Electricity Rate at 9ppm, following a 1ppm rise from 1 March 2023 and the increase from 5p in December 2022.

Latest research from EV charging payment specialist Mina indicates that the higher rate “aligns with a few more journeys than before”, but it’s still a small percentage. The company’s analysis also shows all public charging costs more than what can be reclaimed, while the number of home sessions that cost less than the AER has doubled, but the driver still loses out in four out of five charges.

The new AFR tables are as follows (old rates in brackets):

The previous rates can be used for up to one month from the date the new rates apply. Hybrid cars are treated as either petrol or diesel cars for AFR purposes.

The full list of rates can be viewed here, along with the tables for calculating them.