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New advisory fuel rates announced

By / 8 years ago / Latest News / No Comments

The rates have been brought in three months early in recognition of the recent and sudden increase in fuel prices.

Under the move, the rates for petrol (including petrol hybrid cars), diesel and LPG fuelled cars with engines of 1,400cc or less have each been increased by 1p to 14p, 13p and 10p respectively. The rates for petrol and diesel cars with engines of 1,401cc to 2,000cc have also been raised by 1p to 16p and 13p while the rate for LPG vehicles in this category goes up 2p to 12p.

Rates for cars over 2,000cc have also been increased and rise 2p to 23p for petrol while diesel is up 1p to 16p and LPG is up 2p to 17p.

The fuel prices used in the calculations are 128.9/l for unleaded and 134/l for diesel.

The full list of rates is as follows:

Engine size             Petrol      Diesel     LPG

1,400cc or less        14p           13p          10p

1,401cc to 2,000cc  16p           13p          12p

Over 2,000cc           23p          16p          17p

HMRC normally reviews the AFR rates twice a year, with any changes taking effect on 1 June and 1 December. However, it will also consider changing the rates if fuel prices fluctuate by 5% from the published rates that each review is based on and the price change is considered to be sustained.

For one month from the date of change, employers may use either the previous or new current rates, as they choose. HMRC adds that employers may make or require supplementary payments if they so wish, but are under no obligation to do either.

ACFO has been calling for the rates to be changed for some time, particularly following the VAT and fuel duty rises in January and directors Julie Jenner, John Pryor and Stewart Whyte recently met with the HMRC Policy Advisor to discuss the current concerns over the levels of the Advisory Fuel Rates (AFR) reimbursement schedule. The organisation had said that the previous rates would 'undoubtedly leave drivers out of pocket'.

For more of the latest industry news, click here.

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