Advisory Fuel Rates for next quarter come into effect

A new set of Advisory Fuel Rates for the next financial quarter are now in effect as of 1 September 2023. These rates apply to any employee who uses a company car.

The rates can be used in circumstances where you are reimbursing employees for business travel in their company car or in requiring employees to repay the cost of fuel used for private journeys. If you use these rates, you will not need to seek a dispensation to cover the payments.

The new rates are:

Petrol

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	49.5	146.2 pence	664.5 pence	13.4 pence	13 pence
1401 to 2000	42.1	146.2 pence	664.5 pence	15.8 pence	16 pence
Over 2000	26.7	146.2 pence	664.5 pence	24.9 pence	25 pence

Diesel

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1600	56.7	148.2 pence	673.9 pence	11.9 pence	12 pence
1601 to 2000	48.0	148.2 pence	673.9 pence	14 pence	14 pence
Over 2000	36.3	148.2 pence	673.9 pence	18.6 pence	19 pence

LPG

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	39.6	87.3 pence	396.9 pence	10 pence	10 pence
1401 to 2000	33.7	87.3 pence	396.9 pence	11.8 pence	12 pence
Over 2000	21.3	87.3 pence	396.9 pence	18.6 pence	19 pence

The Advisory Electricity Rate (AER), has also increased by 1ppm, from 9ppm to 10ppm from September 1, 2023.

Please be aware that you can use the previous rates for up to one month from the date the new rates apply. Details of the previous fuel rates can be found by clicking here.

Hybrid cars are treated as either petrol or diesel cars for the purposes of Advisory Fuel Rates.