HMRC announces latest Advisory Fuel Rates
HMRC has published its new Advisory Fuel Rates (AFRs), effective from 1 December 2022.
Petrol rates go down by 1ppm across the board while diesel AFRs stay the same
The new AFRs, used by employees to claim for fuel costs in company cars, see petrol rates go down by 1ppm across the board after the average cost of fuel fell. Meanwhile, diesel AFRs remain the same.
For LPG-fuelled vehicles, rates go up by 1ppm for all size engines.
HMRC had already announced earlier this month that the Advisory Electricity Rate (AER) will go up from 5ppm to 8ppm from the same date. This follows the 25% increase from 4ppm in the 1 December 2021 rate. It will also review the electric rate quarterly from now on, in line with the practice for advisory fuel rates.
The new AFR tables are as follows (old rates in brackets):
| Engine size | Petrol – amount per mile | LPG – amount per mile |
|---|---|---|
| 1400cc or less | 14 pence (15p) | 10 pence (9p) |
| 1401cc to 2000cc | 17 pence (18p) | 12 pence (11p) |
| Over 2000cc | 26 pence (27p) | 18 pence (17p) |
| Engine size | Diesel – amount per mile |
|---|---|
| 1600cc or less | 14 pence (14p) |
| 1601cc to 2000cc | 17 pence (17p) |
| Over 2000cc | 22 pence (22p) |
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.
Natalie Middleton
Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.
