New advisory fuel rates (AFRs) for the next quarter are now out, bringing some increases for petrol and diesel engines.

Fuel prices rose for the fourth straight month in January

The new AFRs, used to reimburse employees for business travel in their company cars, are effective from 1 March 2025 and include a 1ppm uplift for midsize petrol engines (1401cc to 2000cc) and a 1ppm increase for smaller diesels (1600cc or less).

The advisory electric rate (AER) for fully electric cars has been held at 7ppm.

The rise for some AFRs follows latest RAC data showing that petrol and diesel pump prices jumped again in January, marking the fourth straight month of increases on the back of rising oil prices.

The figures are based on latest petrol and diesel prices taken from the Department for Energy Security and Net Zero (DESNZ) while the LPG (UK average) is from the Automobile Association website.

The previous rates can be used for up to one month from the date the new rates apply.

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

Electric

The advisory electric rate (AER) for fully electric cars remains at 7 pence per mile from 1 March 2025.

Hybrid cars are treated as either petrol or diesel cars for AFR purposes.

The AER is calculated using electrical price data from the Department for Energy Security and Net Zero, along with the Office for National Statistics (ONS), car electrical consumption rates from the Department for Transport and annual car sales volumes to businesses (using the Fleet Audits average for the last three years).

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