New Advisory Fuel Rates from HMRC bring increases across the board

HMRC has published its Advisory Fuel Rates (AFRs), effective from 1 June 2022 and with comprehensive changes across the board.

Fuel pumps

All AFRs have now been increased and rise by up to 3ppm

Announced as pump prices continue to hit new highs, the new AFRs see petrol rates hike up 1ppm for smaller engines, 2ppm for midsize and 3ppm for larger engines.

Diesel rates increase by 2ppm for smaller engines and 3ppm for midsize and larger ranges.

For LPG-fuelled vehicles, rates go up by 1ppm across all three categories.

Meanwhile, the Advisory Electricity Rate (AER) for reimbursing electric company car mileage remains at 5ppm despite rising energy prices. This follows the 25% increase from 4ppm in the 1 December 2021 rate.

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

Engine size Petrol – amount per mile LPG – amount per mile
1400cc or less 14 pence (13p) 9 pence (8p)
1401cc to 2000cc 17 pence (15p) 11 pence (10p)
Over 2000cc 25 pence (22p) 16 pence (15p)
Engine size Diesel – amount per mile
1600cc or less 13 pence (11p)
1601cc to 2000cc 16 pence (13p)
Over 2000cc 19 pence (16p)

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.

For more of the latest industry news, click here.

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.